Crypto and Tech at Risk Amid Rising Rates: Peter Schiff

Popular Bitcoin critic and gold advocate Peter Schiff has once again issued new assertions to downplay the broad crypto ecosystem.

This time, the vocal critic has described crypto and tech investors as ignorant amid rising rates, in an X post on May 21.

Although Bitcoin has seen a sharp surge today, pushing its price to a new high of $109,000, Schiff still believes it is a death trap for investors in the space.

In his post, Schiff revealed that he is curious about how much higher long-term interest rates need to jump before investors in the crypto and tech industries take notice. However, Schiff believes that moments of realization are fast approaching and the truth regarding his concerns will soon be uncovered.

Interest rates to continue rising at crypto’s detriment

Following his assertions, Schiff states that investors’ decisions to continue pouring funds into stocks and cryptos despite the continued rise in interest rates could mark a pathway to massive financial losses, implying that these assets are highly risky. Schiff has suggested that shifting economic sentiments expose crypto and stocks to more risks.

While Schiff strongly believes the moment of truth is near, regardless of what the breaking point might be, he has predicted that there are high chances rates will continue to increase.

In recent days, Peter Schiff has expressed concerns about rising interest rates and their impact on the U.S. economy. He believes that rising long-term rates will reduce the present value of future earnings, thereby putting pressure on the growth of stocks.

While cryptocurrencies are often driven by sentiment, they can become vulnerable to the risks posed by macroeconomic pressures.

Schiff’s controversial warning on tech stock and crypto investments comes at a time when the prices of stocks and leading cryptos have hit their all-time highs (ATHs).

One example that has sparked major speculation today is the price of Bitcoin, which sharply rose to a new record of $109,586 during the mid-hours of May 21.

Although the coin gave back some of its gains a few hours later, returning to $106,000 and trading steadily around that price, investors have remained bullish about the asset’s potential.