04.06.202614:29 Forex Analysis & Reviews: Peter Schiff: Bitcoin bubble pulls US in

As Bitcoin edges back toward the annual low after a modest correction and Ether attempts to rebound from about $1,800, Bitcoin critic Peter Schiff seized the moment to strike.

Against the backdrop of falling prices, he highlighted a critical vulnerability in the capital structure of Strategy—a well-known institutional buyer of Bitcoin in recent years. Schiff noted that the preferred series shares STRC had fallen to $94.85 against a $100 par value, pushing the current dividend yield to 12.12%. The mechanics of the trap are simple and brutal: the lower STRC trades relative to par, the more costly servicing dividend obligations become for the company in relative terms.

If Bitcoin continues to decline, that dynamic accelerates the erosion of cash reserves and brings forward the point at which Strategy may be forced to sell increasing amounts of bitcoin to fund payments. Issuing new preferred shares at a discount in such conditions only deepens the debt hole.

Schiff's argument carries a political dimension as well. He says Republicans made a strategic error by publicly tying themselves to the Bitcoin narrative: Mr. Trump promised to make the United States the Bitcoin capital of the world to secure votes and financing from the crypto industry while his family simultaneously profited from personal crypto projects. When the Bitcoin train derails, Schiff argues, Democrats will immediately use the losses of millions of investors as political ammunition and a pretext for the toughest possible regulation of the entire sector.

Schiff's principal thesis follows the classic bubble logic: first the asset absorbs enormous sums of money, then it bursts, and the larger the inflows, the more painful the fallout.

The counterargument is not trivial: Bitcoin has survived multiple 70–80 percent drawdowns and each time has recovered. But the current situation differs from past cycles in a key respect: for the first time, public reserves, the balance sheets of listed companies with debt obligations, and the political reputations of senior government figures are materially involved.

Trading recommendations:

Buyers of BTC are targeting a return to $64,400, a level that would open a direct path to $65,800 and then to $67,700. A break above $67,700 will signal attempts to restore the bull market. On the downside, buyers are expected at $62,600. A return below that area could quickly push BTC toward $61,100, with a farther target at $59,600.

As for Ethereum, a clear hold above $1,783 would open a direct route to $1,838. The farther target is the high near $1,901; a break above that level would indicate strengthening bullish sentiment and renewed buyer interest. On the downside, buyers are expected at $1,724. A fall below that level could rapidly send ETH toward $1,645, with a deeper target at $1,593.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.