Will Trump’s ‘Bitcoin is a Ponzi’ remark crash BTC? Peter Schiff wonders

The crypto market has been trying to recover after Bitcoin [BTC] dropped close to $62,000 over the last two days.

During this fall, Peter Schiff never missed a chance to criticize Bitcoin, calling it a “bubble” and suggesting this could be the start of its collapse.

But Bitcoin is now showing some signs of recovery. After the dip, the world’s largest cryptocurrency bounced back to around $68,197, rising nearly 4.75% in the past 24 hours. 

Peter Schiff slams Bitcoin once again

Still, Schiff took to X and noted, 

Interestingly, this time, Schiff changed his tone slightly.

Instead of only criticizing Bitcoin on technical or economic grounds, he started linking its volatility to politics, especially the support that he believes BTC receives from U.S. President Donald Trump and his administration.

Schiff’s argument suggests that Bitcoin is surviving because of political backing and that if government support shifts, the asset could suffer. 

Did this comment impact Bitcoin’s price?

But the market reacted differently. When Schiff’s comments began circulating, Bitcoin was trading around $64,236, but then the price moved up sharply toward $68,000.

However, this rally was not necessarily about supporting Trump or rejecting Schiff’s views. A closer look at the charts shows a more basic explanation.

There was no major news or strong fundamental reason behind the rise. Instead, many traders who had bet on the price falling, i.e., the short sellers, were forced to close their positions as Bitcoin started climbing.

For context, when short sellers rush to buy back Bitcoin to limit their losses, it pushes the price up even faster, also known as a short squeeze. 

So, rather than being a political statement, the move looks more like a technical bounce. 

A mixed bag of critics and supporters

As expected, the crypto community pushed back on the comments made by Schiff and said,

Echoing similar sentiments, another user added, 

However, some also supported Schiff’s narrative, as highlighted by another X user who argued, 

Is Schiff correct this time?

All in all, the current market fear comes from a simple contradiction. Bitcoin’s biggest rally, when it reached around $124,500, happened after Donald Trump returned to the U.S. presidency. 

But Peter Schiff is now trying to turn that story around. He argues that the $124K peak was not a sign of long-term strength. Instead, he believes it was a political bubble, driven more by excitement than by real fundamentals.

In fact, recently, too, Schiff argued that selling gold to buy Bitcoin was a “huge mistake.” 

In simple terms, Schiff is saying that the same political support that pushed Bitcoin up could also lead to its fall. 

But for now, it remains only a theory. The market appears to be tuning out the noise and focusing on the fact that Bitcoin is still standing strong.

Final Summary

• The recovery from $62,000 to near $68,000 shows buyers are still active at key support levels.
• Schiff links Bitcoin’s strength to political backing, but the market’s recent move looks technical, not political.