Economist Peter Schiff said on Thursday that investors are overlooking Bitcoin (CRYPTO: BTC) while focusing too heavily on a “deflating AI bubble.”
Midterm Elections Supplied ‘Final Pin’ for BTC, Says Schiff
On Thursday, chipmakers recorded their worst session since the COVID-19 market crash, with iShares Semiconductor ETF (NASDAQ:SOXX) plunging 12.15%.
Bitcoin, too, saw a sharp correction, dropping below $76,000 and hitting its lowest level since Sept. 16, as a broader selloff in technology stocks spread across risk assets.
“The biggest difference between the two is that while AI has actual value, Bitcoin has none,” Schiff argued.
The longtime Bitcoin critic urged holders to sell "before the air comes gushing out," calling the Democratic sweep of Congress in the midterm elections "the final pin" for the cryptocurrency.
Bitcoin’s Post-Election Rally Quickly Unravels
Schiff said Bitcoin’s fortunes had been tied to President Donald Trump, whom he described as the "Bitcoin president."
He has suggested that greater congressional scrutiny of the Trump administration could weaken the political support that helped fuel Bitcoin’s rally.
“What’s bad for Trump is bad for Bitcoin. Also, Republicans support Bitcoin. Democrats don’t,” the economist said. “It’s going to take even larger contributions from whales to buy Democrats than they already paid to buy Republicans.”
The Dump After Pump
In the immediate aftermath of the midterm elections, Bitcoin rallied strongly, rising from $77,000 to slightly above $81,000.
Market observers, including American Bitcoin Corp. (NASDAQ:ABTC) co-founder Eric Trump, said the spike reflected the new reality of a "split government," with political uncertainty triggering what he described as a “flight to security.”
However, the gains were erased on Thursday amid a broader sell-off in AI stocks.
SkyBridge Capital founder Anthony Scaramucci, however, said that the latest pullback offers investors who missed Bitcoin’s last bull run another “chance” to get in.
Price Action: As of this writing, BTC is down 6.10% in the last 24 hours to $75,303.08, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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