Economist Peter Schiff has warned that Bitcoin remains vulnerable to a broader market correction, particularly if technology stocks pull back from current levels. Speaking on his latest podcast, Schiff expressed concern that Bitcoin's recent gains could amplify losses if a larger market reversal occurs.
Schiff pointed to soft economic indicators—including lower-than-expected employment figures and declining inflation data—as signs that markets have absorbed negative signals without pricing in the full risks. He noted that bond prices have continued to fall despite these economic headwinds, suggesting a disconnect between asset valuations and underlying conditions.
The economist also focused on Strategy Holdings' ability to purchase Bitcoin. He argued that while Strategy's stock price has recovered and the company continues to accumulate Bitcoin, its financing capacity may become constrained. According to the latest available data, Strategy holds approximately 848,000 BTC alongside $4.8 billion in USD reserves.
Despite Schiff's skepticism about Strategy's ability to raise capital through additional stock sales, the company has continued its Bitcoin purchases. Recent acquisitions include 334 BTC for approximately $28.7 million, alongside a $176 million repurchase of its own shares.
At the time of Schiff's remarks, Bitcoin was trading around $84,500, having recovered from rejections near $87,000. Schiff warned that while Bitcoin has shown resilience, a correction in technology stocks could trigger a significant downturn in the cryptocurrency.
