Schiff Warns Higher Yields Will Crush Bitcoin and Crypto Market
Bitcoin critic Peter Schiff has once again weighed in on the cryptocurrency's performance. In an interview with Bitcoin Magazine, he argued that higher inflation would strengthen gold's investment case and create pressure on stocks and cryptocurrencies.
Schiff believes that higher Treasury yields could make lower-risk assets more attractive, leading to a stock market sell-off that would be 'very bearish' for Bitcoin and the broader crypto market. He also cautioned that higher borrowing costs and tighter liquidity could further weigh on speculative assets like BTC.
According to Schiff, persistently high inflation is driving Treasury yields substantially higher, with the 10-year yield hovering around 5%. He warned that yields could eventually climb above 6% if inflation remains elevated. In his view, Bitcoin has failed to behave like 'digital gold' and should increasingly be measured against gold rather than just against the US dollar.
Schiff maintained his long-held view that the cryptocurrency lacks the underlying value that gives gold its monetary properties. Gold, on the other hand, has rebounded 2.4% following the Fed's decision, as traders reassess the outlook for inflation, interest rates, and the dollar.