Peter Schiff Warns of Speculative Crypto Mania Fueled by Trump's Endorsement of Bitcoin

Schiff specifically pointed out the $TRUMP meme coin, which has suffered a dramatic fall of over 80%. He believes that Trump's support for crypto is fueling a speculative mania, leading many unsuspecting investors toward financial losses.

Peter Schiff, a known critic of cryptocurrencies, has taken to X to express his concerns over U.S. President Donald Trump’s influence on the speculative crypto market.

Specifically, Schiff highlighted the $TRUMP meme coin, which has suffered a dramatic fall of over 80%. The coin, launched with Trump’s name, has seen a monthly decline of 32.57%.

However, despite these losses, the coin still has a market capitalization of $2.2 billion. This reflects the high speculative interest in the coin, even as it continues to depreciate rapidly.

Schiff's concerns stem from the potential for massive financial losses, especially for investors who might not be fully aware of the risks involved in such investments.

"Now that Trump is actively promoting crypto, more people may become victims of a speculative bubble than in any previous financial mania in history," Schiff stated.

His comments come in response to a post by Together V, a supporter of Trump and a cryptocurrency enthusiast. Together V expressed optimism about Trump's influence on the crypto market.

"I have no doubt that Trump will bring a historic wave of prosperity to the American people by ushering in the age of Bitcoin. It’s no coincidence that the Democrats are panicking as Trump becomes increasingly popular among young voters, who are also the primary consumers of meme coins."

However, Schiff countered with a warning about the risks involved in such investments.

"Is Trump running a pyramid scheme to fleece his followers out of their money by getting them to invest in risky meme coins like $TRUMP, which is down 80% from the highs?" he questioned.

Schiff's criticism of Trump's involvement in the crypto industry is part of his broader commentary on the government's role in the digital assets market.

The Strategic Bitcoin Reserve, a concept Trump praised at the Blockworks Digital Assets Summit, is nothing more than wasteful spending, according to Schiff.

He maintains that Bitcoin, despite its popularity, is not a reliable long-term investment and should not be considered a secure store of value.

Schiff claims that the crypto industry is manipulating the Strategic Bitcoin Reserve narrative to lure more Americans into speculative investments.

In his view, Trump's pro-crypto stance is misleading, and his endorsement of such projects is purely political rather than based on sound financial reasoning.