Peter Schiff Reacted to Trump’s Tariffs With Sharp Crypto Criticism

The crypto market is under pressure, and economist Peter Schiff isn’t holding back. A longtime critic of digital assets, Schiff has claimed that the recent dip in Bitcoin and Ethereum prices is proof that crypto is “finally starting to crack.” His comments come after a delayed reaction in markets to U.S. President Donald Trump’s newly announced tariffs.

Tariffs Trigger Market Turmoil

On Friday, Trump introduced new tariffs that sent shockwaves through traditional and digital markets. While some crypto supporters initially claimed Bitcoin would hold tight, that didn’t last long. Over the past 24 hours, Bitcoin has dropped 5.6% and is now trading at $78,769. That’s a deep fall, 27% down from its all-time high of $108,786 in January.

Ethereum didn’t fare any better. It dropped 12% and is now sitting at $1,591. That’s more than 67% below its November 2021 peak. The sell-off isn’t limited to crypto. U.S. stock futures slipped Sunday night, suggesting a rocky start to the week. In Asia, Japan’s Nikkei 225 fell as much as 8.9%, and Taiwan’s Taiex index saw a nearly 10% decline after reopening, triggering circuit breakers for big players like TSMC and Foxconn.

Crypto Liquidations Cross $892 Million

The ripple effects of the tariffs were also felt in the form of massive crypto liquidations. In just 24 hours, over $892 million in positions were wiped out. Of that, $300 million came from Bitcoin longs and shorts. These figures, reported by CoinGlass, show how unstable the market has become in such a short time.

Peter Schiff has used this moment to renew his warnings. Referring to Trump’s involvement with crypto, he sarcastically tweeted, “I thought the dumbest thing Trump would do was establish a Strategic Bitcoin Reserve. I was wrong.”

Meme Coin Experienced a Setback

Even meme coins haven’t been spared. Schiff pointed out that the Official Trump meme coin launched earlier this year is also sinking. It has dropped 13.6% in the past day and is now priced at $7.93. That’s a dramatic 89.1% plunge from its January 19 high of $73.43. Schiff called it “appropriate” that this coin is leading the fall, making his stance very clear.

Schiff Questions Crypto Community’s Support for Trump

What raised eyebrows even more was Schiff’s concern about how some crypto leaders seem to back Trump’s trade decisions. In his post, he offered three possible reasons for this support: 

“1) They’re actually this dumb? 

2) They need to back anything Trump does to secure his continued support. 

3) They believe the economic harm will benefit Bitcoin.”

Schiff has long spoken out against government involvement in crypto, including the idea of a Strategic Bitcoin Reserve. He believes this kind of alignment between policy and digital assets could end in major losses, especially for everyday investors.