Peter Schiff Goes After the US Government's Plan to Create a Strategic Bitcoin Reserve

The crypto market's latest decline has set off Peter Schiff, one of Bitcoin's loudest critics, against the US government's plan to implement a Strategic Bitcoin Reserve.

The crypto market’s latest decline has set off Peter Schiff, one of Bitcoin’s loudest critics, against the US government’s plan to build up a Strategic Bitcoin Reserve. Through his post on social media platform X, Schiff questioned the “rationale” behind the US government’s move, given Bitcoin’s tendency to lose value quickly.

Bitcoin’s Price Drop Fuels Schiff’s Skepticism

Bitcoin’s price fell to $76,600 early Tuesday morning, part of a broader crypto market pullback. This latest Bitcoin dip means the digital currency has lost 30% of its value since hitting an all-time high of $109,356 on January 20.

According to Schiff’s calculations, it took less than two months for Bitcoin to shed that much value. And if Bitcoin drops another 50%, it will be trading at $38,000, which is about the price range it fell to in March 2023 after dropping from its 2022 highs.

The US government is planning to diversify its foreign exchange reserves into digital assets, particularly Bitcoin.

Schiff further claimed that the US needs to focus on bringing manufacturing back home instead of investing in Bitcoin. He also took a jab at crypto entrepreneurs, saying that many crypto millionaires are going to need manufacturing jobs soon, hinting that they might face financial difficulties and require new employment opportunities.

Most analysts view Bitcoin’s performance this year as strong, despite the recent pullback. Since the beginning of 2023, Bitcoin has experienced a surge of 410%, and it is currently up 35% year-to-date, according to TradingView data.