Peter Schiff Casts Doubt on Bitcoin Rally Ahead of Trump’s SOTU Speech

Bitcoin witnessed a brief surge ahead of US President Donald Trump’s State of the Union speech. While the surprising hike has sparked optimism, not everyone is convinced the rally will last. Longtime Bitcoin critic Peter Schiff has raised concerns about the move, suggesting that the BTC price surge may be driven more by speculation around Trump’s SOTU speech rather than real market strength.

Peter Schiff Questions Bitcoin’s Pre-SOTU Speech Rally

In his latest X post, Peter Schiff, a prominent advisor of gold and a critic of crypto, has raised doubts on the recent Bitcoin price surge ahead of the Trump SOTU speech.

Commenting on this unexpected rally, Peter Schiff argued that the speculation surrounding Trump’s SOTU speech has triggered the price move. This indicates that the current Bitcoin price surge is short-lived. In other words, Schiff believes that the jump may not be based on strong fundamentals, but rather short-term speculation. He wrote on X,

“Bitcoin spiked. I wonder if Trump crypto bros managed to slip a Bitcoin reference into the SOTU address. If Bitcoin isn’t mentioned at all, I expect it to sell off. If it is mentioned, it’s still likely to sell off as Trump insiders who bought ahead of the speech sell the news.”

Peter Schiff added that traders could be positioning ahead of the SOTU speech, anticipating that Trump would mention BTC during his address. They may have been buying Bitcoin in speculation that its price would rise following a possible reference to BTC in the speech. Thus, his words indicate that the current positive trend is not triggered by genuine demand or long-term confidence.

This comes following Peter Schiff’s recent warning of Bitcoin’s potential price crash to $20k. As CoinGape reported, he urged investors to sell their holdings before the downfall.

Is a Pullback Imminent?

Further, Peter Schiff posited that Bitcoin could face a pullback despite the current spike. If Bitcoin wasn’t mentioned in the SOTU speech, the price is likely to fall due to disappointment. Even if it was referenced, insiders who bought it may use the moment to “sell the news.”

This could also trigger a decline after the initial hype fades. Thus, Peter Schiff warns that the Bitcoin price drop is imminent. His words also echo the projections from other experts. For instance, CoinGape reported that JPMorgan CEO warned of a 2008-style market crash ahead.

Moreover, Schiff adds that he wants investors to stay away from the cryptocurrency. His words read,

“I want to make sure that people don’t buy Bitcoin instead of gold. Bitcoin pumpers are trying to convince would be gold buyers to buy “digital gold” instead of the real thing.”

Bitcoin Price Surges Ahead of Trump’s SOTU Speech

As noted by Peter Schiff, BTC saw a notable hike ahead of President Trump’s SOTU speech. The cryptocurrency rose by over $2,000, climbing from around $64,000 to nearly $66,000. As of now, the BTC price is valued at $64,967, up by about 3.6% in a day. The coin is still down by 4% and 26% over the past week and month, respectively.

While the spike was reportedly driven by anticipation of a possible Bitcoin reference in the SOTU speech, there have been no reports confirming that such a mention actually took place. In the longest SOTU in history, Trump focused more on his economic agenda. Rep. Don Bacon noted,

“He should talk this way every day. This was a good speech on the affordability. An hour was spent on it, and that’s what he should be dwelling on.”

Thus, investors may be losing their earlier optimism, which has once again brought the BTC price to the $64k level, with marginal hikes. Traders will be closely watching whether BTC can hold above the $65,000 level or if Schiff’s predicted “sell-the-news” reaction begins to play out in the coming sessions.