FameEX Hot Topics | Peter Schiff Announces Bitcoin Is in a Bear Market Due to US Economy's Stagflation Concerns

Economist and well-known gold advocate Peter Schiff has recently declared that Bitcoin is in a bear market, despite rising interest in spot bitcoin exchange-traded funds (ETFs). He also warned that stagflation is not just a looming threat but a current reality in the U.S. economy. Schiff shared these insights through a series of posts on the social media platform X.

On Wednesday, Schiff discussed the declining price of bitcoin, which fell below $57,000 despite significant inflows into bitcoin ETFs in recent months. He stated, "Despite all the hype around the bitcoin ETFs, bitcoin is clearly in a bear market." He pointed out that bitcoin's value is down 23% in dollars, now trading at less than 25 ounces of gold. His stark message to bitcoin holders was: "Turn out the lights HODLers, the party is over."

Schiff has consistently been a critic of bitcoin, especially during price downturns. Earlier last month, he proclaimed the end of the bitcoin "fad" amidst rising gold prices, describing bitcoin as a massive bubble. This period also saw a trend of outflows from U.S. spot bitcoin ETFs, which have seen five consecutive days of withdrawals, totaling $635 million.

Additionally, Schiff has voiced concerns about broader economic issues in the U.S. On the same day, he commented on recent economic indicators, saying, "Today’s economic data is conclusive evidence that stagflation is not just a future possibility, but already a current reality." He detailed that the April Institute for Supply Management (ISM) index showed a significant downturn, with orders plummeting and prices paid skyrocketing. Moreover, job openings in April dropped to their lowest in three years.

Earlier in April, Schiff had warned that inflation was returning "with a vengeance" and stressed the need for "significant" interest rate hikes to counteract it. He also criticized JPMorgan Chase CEO Jamie Dimon for underestimating the economic challenges ahead. In a more recent analysis, Schiff predicted tough times for the Federal Reserve, noting, "It’s game over for the Fed ... Despite forecasts of Fed rate cuts, long-term interest rates continue to climb." He argues that rising long-term interest rates will worsen inflation, which, while bad for bonds, could be beneficial for gold, reinforcing his longstanding advocacy for the precious metal.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.