- Rising trade tensions, including a proposed 145% U.S. tariff on Chinese imports, have escalated fears of prolonged market instability for Bitcoin and crypto.
- March’s soft inflation data (CPI up 0.1%) and expectations of a Federal Reserve rate cut amid economic uncertainty.
Economist and gold proponent Peter Schiff, has predicted that Bitcoin (BTC) will be in shambles by the time the world’s economic crisis has fully deepened. This created massive controversy in the crypto world as BTC enthusiasts strongly negate the narrative.
Peter Schiff’s Latest Comment On Bitcoin Future
In a post on X (formerly Twitter), Schiff argued that the next financial meltdown may spell the end for Bitcoin, the very asset that emerged from the 2008 crisis. “Bitcoin was created in response to the financial instability of 2008,” Schiff wrote. The economist added, “It’s ironic that a similar crisis in 2025 could mark its demise.”
Such remarks are made at a time of elevated turbulence in financial markets, thanks mainly to rising global trade hostilities. The United States has recently taken a huge step towards economic uncertainty by proposing such a humongous 145% tariff on many of the Chinese goods being imported. Beijing has vowed countermeasures and in response, fears of an equally long trade war and volatile markets have escalated.
Moreover, the crypto market also suffered prior to the recent rebound. Earlier this year, Bitcoin price soared above $100,000 for the first time and had fallen down to around $72,000, showcasing a 28% plunge. Digital asset economy-related companies, such as Coinbase and Strategy (formerly MicroStrategy) suffered losses following the price retreat, as highlighted in our previous report.
Thereafter, U.S. President Donald Trump took the step of freezing new tariffs targeting multiple nations for 90 days to try and tamp down investor nerves. The announcement provided temporary relief as Bitcoin quickly came back up to about $82,000. The bounce was short-lived, sentiment was still capped due to concerns over global economic health.
The BTC Reserve & CPI Dynamics
In March 2025, Trump established a Strategic Bitcoin Reserve, as reported by CNF. Since the market has faced slumps recently, the reserve has declined over 12%. Thus, Schiff believes the decision to stockpile BTC was poorly timed. Moreover, he suggested that gold, which has posted modest gains over the same period, would have served as a safer hedge.
Whilst, in March, the Consumer Price Index (CPI) rose just 0.1%, while February’s bounce was 0.2%. Inflation also cooled to 2.4% per year, well below Wall Street’s 2.6% forecast and past readings of 2.8% in the previous month. Stripping volatile food and energy prices also caused core CPI to decelerate to 0.1% monthly and 2.8% annually, both softer than expected.
The slowdown in inflation has boosted hopes of a potential shift in Federal Reserve policy. Furthermore, market analysts are now pricing in a possible interest rate cut sooner than anticipated. Speculation became even ratcheted up after reports suggesting Fed Chairman Jerome Powell would be willing to take emergency action amid global financial uncertainty.
On Thursday, April 18, Bitcoin’s price rallied on the release of the CPI, surging almost 8% to nearly $81,800. The surge continued on Friday, with BTC’s price at $82,712, representing an intraday gain of 1.28%.
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