Bitcoin Enters a Bear Market
On Tuesday’s episode of the Peter Schiff Show, Peter takes us through this week’s turbulence in the stock and crypto markets. As new trade wars, a Bitcoin crash, and growing deficits signal stagflation, the only asset safe from the turmoil appears to be gold.
Peter starts by warning that investors may be missing a critical piece of the puzzle by ignoring inflation’s erosive power—even as bond buying continues unabated. Algorithmic traders can’t see that this is a replay of the 1970s:
But what bond investors are overlooking as they’re buying bonds is the strength in inflation, because inflation erodes away the value of the bonds they’re buying. So they’re just focusing on the weakness in the economy, and that’s kind of a reflexive move, probably a pre-programmed algorithm to buy bonds because look at all this weak economic data. But the weak economic data is actually inflationary in that it’s going to mean bigger budget deficits and a weaker dollar, which is going to push consumer prices higher. Again, this is stagflation. This is not the type of economic weakness that any of the people who are trading today or who are programming algorithms to trade have experienced.
Once riding high on promises of a “crypto cabinet” under Trump’s presidency, Bitcoin has now officially entered bear market territory—a timely reminder of the volatility inherent in digital assets:
I talked about this in the euphoria of the Trump victory as Bitcoin surged to 109,000 and all things crypto went up. I was saying at the ti
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
