Peter Schiff Warns of Crypto Breakdown Amid Trump’s Tariff Fallout

April 8, 2025 by Mutuma Maxwell

• Bitcoin fell by 5.6% to $78,769, marking a 27% drop from its all-time high.
• Peter Schiff said the decline in Bitcoin reflects a delayed response to Trump’s new tariffs.
• Over $892 million in crypto positions were liquidated in the past 24 hours across major tokens.

After U.S. President Donald Trump announced new tariffs on Friday, the digital asset market demonstrated fresh signs of instability. In the last 24 hours, Bitcoin lost 5.6% of its value to reach $78,769, becoming 27% less valuable than its all-time peak. Peter Schiff, who has opposed cryptocurrencies since the beginning, predicted this price reduction after its delayed occurrence.

The crypto market recorded major fluctuations after Trump implemented his anti-tariff declaration, resulting in a substantial crypto decline together with global equity markets. Peter Schiff again discussed the Strategic Bitcoin Reserve concept, describing it as weak and dangerous since his earlier comments. Despite some Friday optimism, Bitcoin’s steep fall removed any short-term support from bullish traders.

The liquidation of Bitcoin’s long and short positions within the last 24 hours reached a value of over $300 million. The sell-off generated total crypto liquidations worth more than $892 million. The recent selling wave demonstrates the relinquishment of market trust, which spreads into various market segments.

Ethereum Falls Sharply Amid Global Market Slump

The price of Ethereum dropped by 12% after the trade tariff announcement to reach $1,591 within one day. Since November 2021, the coin’s value has decreased by more than 67%, leading it to its current position. Macroeconomic events coupled with investor safety concerns have made Ethereum particularly reactive to market changes, as evidenced by its price drop to $1,591.

U.S. stock futures projected an upcoming poor market opening, which increased pressure on the risk asset Ethereum. Pacific stock indices experienced the most drastic market decline during Asian trading hours. The Nikkei 225 index from Japan sank 8.9, followed by Taiwan’s Taiex index plummeting almost 10%, which caused circuit breaker protocols to activate.

The Ethereum market matched the downward shift experienced by assets with a technological and growth-oriented focus throughout the global financial sphere. Investors seem to be moving away from high-volatility markets based on price decreases combined with a declining market attitude. The crypto industry faced worse issues, according to Schiff, based on Ethereum’s major price drop.

Schiff Blames Loyalty for Crypto Decline

The Official Trump meme coin suffered a 13.6% decrease during the previous day and currently sells at $7.93, much lower than its previous all-time high. Following its record price of $73.43 in January, the token sustained an 89.1% decrease in value until reaching its current price of $7.93. Schiff judged the coin’s poor performance appropriate due to current market conditions.

The coin’s launch at peak hype early this year now faces a steep decline, leading to decreased support from its original followers. The price decline reflects the speculative behavior found in meme tokens, particularly when they rely on political figures or movements. The cryptocurrency suffered its decline during an ongoing downward movement throughout digital retail assets.

The crypto industry came under fire from Peter Schiff when it showed its backing of Trump’s economic policies. Providing financial support based on loyalty instead of solid financial logic seems to be the recommendation that he made. The crash of the meme coin, together with broad market losses, further demonstrated Schiff’s prediction that crypto is prone to changes in political direction.