Schiff: Inflation-Driven Yields Could Crush Bitcoin

Renowned Bitcoin critic Peter Schiff claims that the cryptocurrency has failed to live up to its 'digital gold' reputation. According to him, persistently high inflation is driving Treasury yields substantially higher, which could create pressure on stocks and cryptocurrencies while strengthening the case for gold.

Schiff believes that higher inflation ultimately strengthens gold's investment case, even if expectations for Fed tightening create short-term volatility. Gold has rebounded 2.4% following the Fed decision as traders reassess the outlook for inflation, interest rates, and the dollar.

Schiff argues that Bitcoin should increasingly be measured against gold rather than simply against the U.S. dollar, as it lacks the underlying value that gives gold its monetary properties.

He warns that persistently higher Treasury yields could pressure Bitcoin by making lower-risk assets more attractive and tightening financial conditions. With the 10-year Treasury yield hovering around 5%, Schiff says yields could eventually climb above 6% if inflation remains elevated.