Bitcoin has continued to set new all-time highs, outpacing even the surging U.S. stock market indices. However, according to Peter Schiff – CEO of Euro Pacific Capital – the driving force behind Bitcoin’s rally isn’t its inherent strength, but rather the growing weakness of the U.S. dollar.
Bitcoin Breaks Records as Trading Volumes Soar
Fueled by strong buying demand from Wall Street and retail investors online, Bitcoin hit a new record high of $123,000 earlier this week. After the dramatic surge, its average trading price stabilized around the $117,000 mark, while daily trading volumes flooded major exchanges.
This rapid price appreciation has brought massive profits to a wide range of investors – from retirement savers and casual altcoin traders to large institutional players like Michael Saylor’s Strategy Inc. In July alone, Bitcoin’s realized market capitalization surpassed the $1 trillion threshold – a stunning milestone for any digital asset.
Schiff: “It’s Not Bitcoin’s Strength, It’s the Dollar’s Weakness”
While much of the market celebrated the surge, Peter Schiff remained unimpressed. A well-known crypto skeptic, Schiff argued that Bitcoin’s rally is merely a reflection of the U.S. dollar’s decline, rather than proof of Bitcoin’s resilience.
Even as Congress advanced the GENIUS Act – a bill aimed at regulating stablecoins and seen as a step forward for the crypto industry – Schiff dismissed it as a publicity stunt orchestrated by special interests to hype up Bitcoin and dump worthless tokens onto the public for early investors’ gain.
In Schiff’s view, the fact that Bitcoin is only breaking records when priced in U.S. dollars – but not in euros or Swiss francs – clearly indicates that it’s the dollar that’s weakening compared to other major currencies. He also warned of an overheated crypto bubble in the U.S. that could eventually burst.
While many Bitcoin investors appreciate its tendency to rise when the dollar weakens or when the Federal Reserve signals lower interest rates, Schiff continues to view the entire ecosystem as a “Ponzi scheme” built on fragile expectations.
