- Schiff warns of an imminent collapse in Bitcoin and Ethereum, leading to bankruptcies, defaults, and layoffs across the crypto sector.
- He suggests the crypto downturn could spill into the broader financial system.
- A longtime crypto critic, Schiff urges caution, echoing concerns about speculation, regulation, and the lack of intrinsic value in digital assets.
Noted economist and financial commentator Peter Schiff has issued another stark warning about the cryptocurrency market, predicting a widespread collapse led by sharp declines in Bitcoin and Ethereum, with severe ripple effects across the entire crypto industry.
“Staggering Losses” Predicted
In a tweet posted earlier today, Schiff claimed that the crypto sector is on the brink of a catastrophic downturn. He forecasts an incoming wave of bankruptcies, defaults, and mass layoffs, suggesting the coming losses will be “staggering” in scale.
“The losses that are about to hit the crypto industry will be staggering. Expect a wave of bankruptcies, defaults, and layoffs as the sector is decimated by the imminent Bitcoin and Ether crash, which will obliterate the rest of the altcoin market,” Schiff tweeted.
His comments come as the market enters a volatile period, with key digital assets showing mixed signals after months of speculative growth.
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The losses that are about to hit the crypto industry will be staggering. Expect a wave of bankruptcies, defaults, and layoffs as the sector is decimated by the imminent Bitcoin and Ether crash, which will obliterate the rest of the altcoin market. There is systemic risk as well.
— Peter Schiff (@PeterSchiff) October 17, 2025
Systemic Risk in Focus
Schiff also warned of systemic risk, implying that the impact of a crypto collapse could extend beyond digital assets and into broader financial systems.
While he did not specify exact mechanisms, past commentary from Schiff has tied crypto instability to overleveraged platforms, excessive speculation, and exposure by traditional financial institutions.
Systemic risk refers to the potential for a localized financial disruption, in this case, the crypto market, to trigger broader economic consequences, especially if institutions or investors are heavily entangled with crypto assets.
A Longtime Crypto Skeptic
Peter Schiff is well known in financial circles for his bearish stance on cryptocurrencies. A vocal supporter of gold and traditional stores of value, Schiff has frequently criticized Bitcoin for what he calls its lack of intrinsic value and its reliance on speculative demand.
While many crypto investors dismiss Schiff’s critiques as alarmist, his latest warning echoes growing concerns about regulatory crackdowns, exchange vulnerabilities, and liquidity constraints that have plagued parts of the industry in recent months.
Warning or Wake-Up Call?
While Schiff’s predictions are stark, they serve as a reminder of the inherent volatility and risk in the cryptocurrency sector. Whether his forecast proves prescient or overly pessimistic, investors are being urged to exercise caution, assess portfolio risk, and remain informed as markets evolve.
As regulatory frameworks tighten and the global economy faces macroeconomic headwinds, the crypto market may be entering a defining period—one that will test its resilience, maturity, and long-term viability.
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