Peter Schiff Predicts Bond Market Collapse, Not Bitcoin, Will Trigger Next Crash
Peter Schiff, the gold bug and Bitcoin critic, is doubling down on his bearish calls. He argues the next major market crash won't start with crypto, but with a breakdown in the U.S. Treasury market. Rising yields, he claims, will send shockwaves through stocks, housing, and eventually Bitcoin.
Peter Schiff, the perennial gold advocate and vocal Bitcoin detractor, is sounding the alarm. He's not calling for a crypto collapse to kick off the next big downturn. Instead, Schiff points to the U.S. Treasury market, specifically rising yields, as the true threat. He believes a breakdown in Treasuries will trigger a domino effect across stocks, housing, and yes, even Bitcoin.
Schiff's thesis hinges on soaring Treasury yields, with the 10-year near 4.5% and the 30-year pushing 5%. He expects these numbers to climb higher, making borrowing more expensive and crushing asset prices. This will exacerbate the housing crisis and slow economic growth, forcing the Fed's hand into more money printing, which he sees as a boon for gold.
He dismisses Bitcoin's resilience, pointing to its significant drawdown from all-time highs as proof it's not a safe haven. Schiff predicts Bitcoin will fall hard alongside tech stocks, not act as a hedge like gold. He's skeptical of Wall Street's bullish Bitcoin targets, suggesting private doubts are growing, especially with companies like MicroStrategy selling Bitcoin to fund dividends.
Schiff's prediction is stark: precious metals are poised for a major upward move, while the stock market faces a significant decline. Whether the bond market cracks as he foresees remains to be seen, but his warning provides a clear signal for traders to watch Treasury movements closely.