Renowned market commentator Peter Schiff said Tuesday that only a strategic Bitcoin BTC/USD reserve announced by President Donald Trump could halt the ongoing market slump.
What happened: In an X post, Schiff wrote, "I think the only thing that can delay a Bitcoin meltdown is Trump." He suggested that only a strong show of support from Trump for a strategic reserve, funded by Bitcoin purchases, could address the slowdown.
Schiff said it would be similar to quantitative easing, where the Federal Reserve buys government bonds to boost economic activity. He, however, deemed the scenario unlikely.
See Also: Peter Schiff Questions Michael Saylor-Led Strategy’s Leverage Bitcoin Play Amid MSTR Decline: ‘Massive Dilution Has Destroyed Shareholder Value’
Schiff also mocked the Bitcoin holders, saying. "Turn out the lights, the Bitcoin $100,000 party is over."
He added that despite "Bitcoin entering a bear market," there was no panic or capitulation, indicating that the downturn is just getting started.
Why It Matters: Schiff's comments come after Bitcoin plunged to a three-month low of $86,000, pushing the whole cryptocurrency market down.
Schiff has criticized the concept of a strategic Bitcoin reserve, deeming it the "worst monetary mistake" the U.S. could make.
Trump signed an executive order after assuming office, which included a directive to evaluate the creation of a "strategic national digital asset stockpile" and not just a Bitcoin stockpile.
Schiff said it was just an attempt to "pay off donors" rather than a genuine effort to advance the cryptocurrency industry.
Price Action: At the time of writing, Bitcoin was exchanging hands at $88,714.28, down 3.63% in the last 24 hours, according to data from Benzinga Pro.
Image via Shutterstock
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