Peter Schiff Says Bitcoin’s Rebound Ahead of Trump’s State of the Union Address Is Fake

▲ Peter Schiff

Bitcoin (BTC) has begun to rebound ahead of U.S. President Donald Trump’s State of the Union address. However, Peter Schiff, chairman of Euro Pacific Capital, strongly warned that this surge is a trap leading investors toward ruin.

On Feb. 24 (local time), a crypto-focused outlet reported that Schiff diagnosed the recent rise in Bitcoin’s price as merely a temporary bubble ahead of the address rather than a reflection of fundamental value growth. He pointed out that investors are overly fixated on the prospect of crypto-friendly remarks from Trump, while ignoring the market’s underlying vulnerabilities.

Schiff particularly analyzed that this rally resembles a classic “buy the rumor, sell the news” pattern. He explained that massive sell orders could pour in immediately as the president’s speech begins or ends, triggering a sharp drop in Bitcoin’s price. Although Bitcoin has recovered the $65,000 level, he stressed that its technical foundation remains weak and that, compared with gold—a true safe-haven asset—it falls significantly short in preserving purchasing power.

Schiff predicted that during periods of heightened volatility in the digital asset market, the value of tangible assets like gold will shine even brighter. He warned that while Bitcoin investors continue to hold positions in hopes of a vague rebound amid a downturn, they may ultimately face even greater losses. In fact, Bitcoin still remains below its October 2025 peak, and short-term rebounds appearing amid unresolved macroeconomic uncertainty are, in his view, nothing more than bait to lure new investors.

Market participants are currently on edge over whether President Trump will announce plans in his address to designate Bitcoin as a national strategic reserve asset or to significantly ease regulations. However, Schiff bluntly argued that such political statements will not resolve the market’s liquidity issues. He added that although Bitcoin continues its speculative frenzy under the appealing label of “digital gold,” it will ultimately fail to prove its intrinsic value and collapse.

Bitcoin has now entered a phase of extreme volatility depending on the outcome of the speech. There is a strong possibility of a sharp price correction following the news release. Investors should not be swayed by short-term price momentum but instead carefully analyze hard market data and macroeconomic trends. While political issues may trigger temporary price swings, they do not guarantee an asset’s long-term viability, making focused risk management essential at this time.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from its use. The information provided herein should be interpreted solely for informational purposes.*