Prominent economist Peter Schiff has issued a stark warning regarding Bitcoin’s recent price surge, attributing its gains to unsustainable political and institutional backing. In an exclusive interview with Cointelegraph, Schiff argued that Bitcoin’s valuation reflects artificial inflation driven by Washington policymakers and Wall Street entities rather than organic market fundamentals.
The gold advocate emphasized that this institutional support creates a fragile foundation for the cryptocurrency’s market performance. Schiff cautioned investors that when political priorities shift or institutional interest wanes, the speculative bubble could rapidly deflate. His analysis suggests Bitcoin’s current price levels don’t correspond to intrinsic value but rather represent a market phenomenon propped up by temporary external factors.
Schiff’s comments come amid ongoing debates about cryptocurrency regulation and increasing institutional adoption. While acknowledging Bitcoin’s recent price achievements, he maintains that the digital asset’s dependence on political and financial establishment support makes its long-term viability questionable. The economist’s perspective adds to growing concerns about potential market corrections should the current supportive environment change.
