Peter Schiff: Bitcoin's Midterm Rally Is ‘Irrational,’ Predicts Democrats Would Sell Bitcoin Reserve
Peter Schiff called Bitcoin’s post-midterm rally "the most irrational" market reaction to the Democratic sweep, arguing a future Democratic White House would sell the entire Strategic Bitcoin Reserve.Schiff Sees Hostility Ahead, Not a Bull CaseSchiff noted that a Democratic Congress will take a hostile stance toward crypto, one he expects to worsen in 2028 if Democrats also win the White House and liquidate all Bitcoin held in the Strategic Reserve.His comments come as Bitcoin climbed back above $80,000 in the hours after results showed Democrats sweeping both chambers, a move that runs directly counter to his framing of the outcome as bearish for crypto markets.Traders Point to Resilience, Not RiskCrypto commentator Ash Crypto listed a string of events many expected to crash Bitcoin over the past two weeks:$6.3 Republicans Stalled Fed US strikes on IranAI stock selloff"Bitcoin hasn’t lost the 50W MA and is now above $78,000," the post read, pushing back against the idea that bad news automatically triggers a crypto crash.Meanwhile, trading firm Flood said it closed nearly all its equity short positions during Tuesday night’s selloff, calling it one of its most profitable months.The firm is sitting on roughly 50% cash while continuing to hold large Bitcoin and HYPE as measured by Hyperliquid Strategies positions, citing a tougher equity outlook without seeing a continued case for staying short.Moreover, crypto commentator Ronald Carter predicted Bitcoin will trade above $100,000 by Nov. 30, a target that would require roughly a 28% move from current levels in under four weeks.Rally Builds on Wednesday’s Broader BounceAs Benzinga reported Wednesday, Bitcoin, Ethereum , XRP and Solana all joined a broad post-midterm rally, with Bitcoin’s push to $80,000 triggering more than $320 million in short liquidations within 30 minutes.Ethereum climbed 7%, XRP and Solana each added 4%, and the Dow Jones Industrial Average surged more than 1,100 points at Wednesday’s open as markets reacted to the Democratic sweep.Michael Saylor separately pointed to bipartisan support for Bitcoin reserves following the elections, noting Florida elected a Republican governor who backed a state Bitcoin reserve while Texas elected a Democratic senator who voted for similar legislation."The case for holding Bitcoin crosses party lines," Saylor wrote, a framing that directly contradicts Schiff’s prediction that Democratic control inevitably means hostility toward crypto holdings.Preview Image: Shutterstock