Gold bull and economist Peter Schiff is again forecasting an impending disaster this one potentially devastating the U.S. economy with a potential massive Bitcoin crash.

In a recent X post, Schiff spotted a potential sudden fall in the U.S. dollar, government bonds, and the stock market as the cause of what he says is an impending economic storm, attributing the rise of “reciprocal” tariffs and renewed trade tensions.

Get ready for a repeat of the sharp selloff in the U.S. dollar, Treasuries, and stocks as investors realize that the "reciprocal" tariffs are coming back. They may not be as high as when first imposed, but they'll be much higher than what dip buyers in stocks and bonds expected.

— Peter Schiff (@PeterSchiff) July 5, 2025

Schiff was not shy. Schiff was scathingly critical of investors for being too complacent and warned that investors who are leaping at the dip in the stock market may be walking into a trap. His message was stark: economic fundamentals are weakening, and markets are not pricing it in.

As always, Schiff could not help but take a swipe at Bitcoin. Despite years of public condemnation of the cryptocurrency market as a speculative bubble, he opined that cryptocurrencies will not offer any meaningful refuge in the future. His view remains the same: during times of panic in the markets, humans run to hard assets like gold, not electronic tokens.

As the deadline approaches this week for President Trump's "reciprocal tariffs" on other countries, National Economic Council Director Kevin Hassett says some negotiations may "push back past the deadline," even as the White House is expecting deals to be struck by Wednesday. pic.twitter.com/V7m0XE1xOw

— Face The Nation (@FaceTheNation) July 6, 2025

What’s fueling the fire is the current Federal Reserve policy. Rate reductions, which most investors had been expecting in 2024, still haven’t happened. With inflation remaining sticky and Fed policy still neutral, Schiff contends there’s limited support backing asset prices.

For Schiff, it’s a perfect storm high multiples, rising trade risk, no Fed lifeline, and misplaced optimism in risk assets like Bitcoin. Whether he’s right or wrong, his warning once again poured cold water over market optimism. And with his track record at warning about systemic risk no matter how unpopular it’s a warning many are no longer willing to ignore.

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