Peter Schiff Calls U.S. Midterms the ‘Final Pin’ for the Bitcoin Bubble as BTC Price Slides Below $76,000

Gold (CM:XAUUSD) advocate and longtime crypto critic Peter Schiff warned on Thursday that the U.S. midterm elections delivered the “final pin” to the Bitcoin (BTC-USD) bubble. Schiff urged investors to sell their holdings right away as Bitcoin gave back its post-election gains and slid toward $75,500 after Democrats won control of both the House and the Senate on Tuesday.

“While all the attention is focused on the deflating AI bubble, no one is talking about the Bitcoin bubble,” Schiff wrote in a Thursday post on X. “The biggest difference between the two is that while AI has actual value, Bitcoin has none. The midterms supplied the final pin. Sell now before the air comes gushing out,” he wrote.

Peter Schiff Links Bitcoin’s Fate to Donald Trump

In a follow-up post on X, Schiff tied the price of Bitcoin directly to the political standing of President Donald Trump. He argued that stronger oversight from a Democratic Congress will weaken the government backing that helped push crypto prices higher.

“What’s bad for Trump is bad for Bitcoin,” Schiff wrote, calling Trump “the Bitcoin president.” “Also, Republicans support Bitcoin. Democrats don’t. It’s going to take even larger contributions from whales to buy Democrats than they already paid to buy Republicans,” he added.

Bitcoin had initially jumped from $77,000 to more than $80,800 right after Tuesday’s vote. However, the rally faded within a day as a wider tech selloff pulled the token down to $75,645 on Friday. Crypto-linked stocks also took a hit during Thursday’s drop, with Strategy (MSTR) and Coinbase (COIN) falling by double digits.

Chipmaker Selloff Drove Bitcoin’s Price Lower

The crypto drop followed a $2 trillion stock market wipeout led by chipmakers rather than politics alone. The iShares Semiconductor ETF (SOXX) plunged 12.15% on Thursday, marking its worst single-day loss since the 2020 market crash. The fund then rebounded 2.79% to $135.58 in early trading on Friday.

Investors dumped chip stocks on fears that newly elected Democratic governors in Texas, Georgia, and Ohio could pause data center construction, while Representative Yassamin Ansari called for a halt on advanced AI development.

Despite the price drop, U.S. spot Bitcoin exchange-traded funds recorded $74.6 million in net inflows the day after the election as institutional investors bought the dip. Schiff has predicted a Bitcoin collapse for more than a decade, including a February call that the token would crash to $20,000 if it broke below $50,000.

At the time of writing, Bitcoin’s price is trading near $75,378.