5 Peter Schiff’s Critiques – Why Rising Bond Yields Are Killing BTC & Other Cryptos

Jakarta, Pintu News – Here are 5 facts about Peter Schiff’s criticism on why rising bond yields are killing BTC and other cryptos:

1. Rising Bond Yields Trigger “Risk-Off” – Heavy Pressure for Crypto

According to Schiff, the spike in government bond yields – including from Japan – triggered a global market reaction towards “risk-off”. In that atmosphere, risky assets such as Bitcoin and other cryptocurrencies came under heavy selling pressure. As a result, crypto prices plummeted a lot – showing high sensitivity to shifts in the bond market.

Also Read: 5 Signals Ethereum (ETH) Has Reached the Bottom After Dropping 28 Percent?

2. Crypto becomes a victim of forced liquidation of leveraged positions

Schiff points out that crypto is now vulnerable to market crises because of the many leveraged positions opened by speculative investors. When bond yields rise and sentiment worsens, margin calls and mass liquidations can trigger sharp price drops. This phenomenon illustrates that high volatility in crypto can be exacerbated by leverage structures, not just fundamentals.

3. Crypto’s Dependence to Global Risk Sentiment – Not a Pure Safe Asset

Schiff emphasized that Bitcoin and other cryptocurrencies reflect more of a “risk asset” than a safe-haven, as their movements are heavily influenced by global macro conditions such as interest rates and bonds.

As bond yields rise, crypto loses investor appeal, as bonds offer more attractive “safe” yields. This situation challenges the narrative that crypto is always hedged against inflation or crisis – especially in a high interest rate cycle.

4. Macro Uncertainty – External Factors Matter More than Crypto Technology Itself

According to Schiff, the current crypto downturn is not due to technology or adoption failures, but rather external factors – bond yields, interest rates, and global risk preferences.

This means that while crypto projects and utilities can be solid, prices can still be “killed” by shifts in traditional financial markets. This shows the interdependence between the traditional financial system and crypto assets, and that crypto is not yet completely insulated from global dynamics.

5. Implications for Investors: Be aware of Macro Risks & Avoid Over-Leverage

Schiff’s critique reminds us that investing in crypto is not just about technology or long-term potential – it’s also about risk management against external conditions such as bond yields.

Investors need to consider that the correlation between crypto and traditional markets is currently increasing, so volatility can be very high. The use of leverage needs to be very selective, as liquidation can happen quickly when bond yields spike or macro conditions deteriorate.

Also Read: 5 Facts about Bitcoin Price Drop to US$ 85,000 – Implications for Crypto Market!

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FAQ

Why would rising bond yields pressure crypto prices?

Rising bond yields make fixed income instruments more attractive than riskier assets. Many investors switched from crypto to bonds, so the demand for crypto fell – causing prices to decline.

Does this crypto decline mean that the fundamentals of crypto technology are bad?

Not always. According to Schiff’s analysis, the decline has more to do with market sentiment and global liquidity – rather than a failure of the technology or utility of crypto itself.

How does leverage exacerbate crypto price declines?

Leveraged positions increase potential profits – but they also increase risk. If the market reverses (for example because bond yields rise), margin calls and mass liquidation could force a forced sell, deepening the price drop sharply.

Does this mean crypto is not viable as an investment asset?

Not necessarily. However, investors need to be aware that crypto is heavily influenced by external factors – so strategies should include risk management, diversification, and awareness of macro conditions.

What does Schiff’s criticism mean for the long-term adoption of crypto?

Schiff’s critique emphasizes that the long-term adoption of crypto must consider the dynamics of global finance. Without macro stability and proper regulation, crypto may continue to experience extreme volatility.

Reference:

• Kevin Helms. Peter Schiff Says Rising Bond Yields Explain Why Bitcoin and Other Crypto Are Getting Killed. Accessed December 3, 2025.