Economist and long-time Bitcoin (BTC) critic Peter Schiff reignited his warnings against cryptocurrency after the market experienced a sharp decline following U.S. President Donald Trump's announcement of new tariffs on Chinese goods.
On Oct. 12, in a series of posts on X (formerly Twitter), Schiff linked the sell-off to political turmoil and alleged market manipulation among those close to Trump.
"TACO strikes again," Schiff wrote. TACO stands for "Trump Always Chickens Out," a term he often uses to describe the President's history of making threats but backing out on them.
Schiff mocked Vice President JD Vance for softening Trump's proposed 100% tariffs on Chinese imports, calling the revision "just a negotiating tactic." He also called out Trump for posting about his "great relationship" with Chinese President Xi Jinping.
"It's not the best negotiation strategy to let your opponent know that you're bluffing," Schiff wrote.
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In a response to another X user, Schiff also claimed that "Trump's mates" shorted crypto on Friday before the President posted about the tariffs on Truth Social, implying that those with inside knowledge of Trump's communications may have profited from the sharp sell-off before positions were reversed.
"It's good to be friends with the king," he added.
Peter Schiff on crypto
Schiff is one of the most outspoken critics of cryptocurrency, particularly Bitcoin (BTC). He has often expressed his deep skepticism towards digital assets, rooted in his long-standing advocacy for gold and hard assets.
Right after the crash, Schiff took to X to compare Bitcoin with gold and silver.
"Today is another example of why Bitcoin is not digital gold or even digital silver," he wrote.
Freaky Friday for crypto
On Friday, Trump posted on Truth Social that the U.S. will impose a 100% tariff on all Chinese goods over and above the existing tariffs. This triggered a massive frenzy in the crypto market, with liquidation value reaching over $19 billion , the steepest liquidation wave since the pandemic.
Related: Peter Schiff has blunt message for Saylor as Bitcoin crashes below $80K
Cryptocurrency exchanges like Binance, Coinbase , and Backpack also experienced lags and outages as trading activity saw a sudden increase.
This story was originally reported by TheStreet on Oct 13, 2025, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.
