Peter Schiff criticises Bitcoin as a hedge against inflation, calling it more like a tech stock. He claims its recent rally is speculative. In contrast, Senator Cynthia Lummis supports Bitcoin adoption to address U.S. debt. MicroStrategy continues backing Bitcoin despite losses. Market conditions show interest in Bitcoin, but analysts caution about regulatory selling.
Peter Schiff, a well-known gold advocate, is once more questioning Bitcoin’s effectiveness as a hedge against inflation. He remarked on Bitcoin’s recent surge of 14% in April but insists it resembles a tech stock more than a stable store of value, citing its lack of decoupling from the NASDAQ. Schiff’s main argument revolves around the notion that Bitcoin is propelled by speculation and broader economic announcements rather than its intrinsic value. He cautioned that Bitcoin’s inherent volatility poses risks during uncertain economic times.
In stark contrast, Senator Cynthia Lummis has voiced strong support for Bitcoin, recently backing the BITCOIN Act. Lummis advocates that greater Bitcoin adoption could potentially address the burgeoning U.S. national debt crisis, which currently exceeds $36 trillion. She emphasizes the need for innovative solutions in tackling such significant fiscal challenges.
MicroStrategy is another entity continuing to champion Bitcoin despite facing a hefty financial loss in Q1 2025 amounting to $16.49 per share due to a $5.9 billion writedown on their Bitcoin holdings. Michael Saylor, the company’s CEO, announced intentions to acquire an additional $84 billion worth of Bitcoin, citing unwavering belief in its potential long-term value amidst market fluctuations.
Market dynamics have also favoured Bitcoin lately, particularly following April’s inflation data which noted a decrease to 2.3%. This news has fueled speculation of possible interest rate cuts, coinciding with Donald Trump’s public call for the Federal Reserve to adopt a more lenient monetary policy. Such factors could certainly enhance Bitcoin’s desirability in the coming months.
Fidelity’s Jurrien Timmer presented an intriguing perspective, arguing that Bitcoin could function as both “hard money” and a “risk asset.” He pointed out that while gold currently offers better risk-adjusted returns, Bitcoin still holds profitable potential if liquidity improves.
Recent observations from Glassnode have shown that long-term Bitcoin holders increased their holdings by 254,000 units, suggesting a degree of confidence in the cryptocurrency. Yet, analysts warn that if Bitcoin’s price nears $99,900, it might trigger a wave of selling pressure.
The question lingers in the air: is Bitcoin a sound hedge against economic turmoil or merely a speculative bubble? The debate shows no signs of resolution anytime soon.
Also Read: Peter Schiff Slams Bitcoin—Again—Says Strategy Will ‘Go Bankrupt’.
