As Bitcoin surpassed the $122,000 mark in mid-July 2025, prominent economist and gold advocate Peter Schiff intensified his criticism of the flagship cryptocurrency, describing the recent rally as a speculative “pyramid” built on shaky foundations rather than genuine adoption.
Schiff pointed to the surge being driven largely by corporate treasury acquisitions rather than retail or organic investor interest, framing it as a “Ponzi built on a pyramid.”
Bitcoin demand has shifted to Bitcoin treasury companies and speculators looking to front-run that buying. This is a Ponzi built on a pyramid. It’s not about broadening Bitcoin adoption — it’s about wild centralized speculation that undermines Bitcoin’s foundational principles.
— Peter Schiff (@PeterSchiff) July 14, 2025
Data reveals that in Q2 2025, over 46 public companies collectively purchased about 159,000 BTC, boosting total corporate Bitcoin holdings to approximately 847,000 BTC, which accounts for roughly 4% of Bitcoin’s total supply. Notable corporations joining the buying spree include diverse names such as GameStop, Trump Media, and Figma. Crypto enthusiasts view these high-profile acquisitions as institutional validation, particularly amid favourable U.S. regulatory discussions regarding pro-crypto legislation, such as the CLARITY and Anti-CBDC Acts.
However, Schiff cautions investors that this momentum is dangerously dependent on continual inflows. He warns that if the wave of corporate purchases slows, the entire structure could unravel, much like momentum-driven speculative bubbles collapse when enthusiasm wanes. This skepticism follows Schiff’s pattern of persistent disapproval of Bitcoin, which he has previously described as neither a reliable store of value nor a legitimate alternative to gold.
Schiff also continues to advocate for traditional safe-haven metals, recently urging investors to shift from Bitcoin to silver, which he believes carries less downside risk amid the current market exuberance. Despite his criticism, he has paradoxically engaged with Bitcoin-based assets, including the sale of a personal NFT collection on the Bitcoin blockchain, highlighting the nuanced relationship he maintains with the crypto space.
The Bitcoin market itself remains volatile. After record-breaking highs near $118,000 and significant short position liquidations exceeding $1 billion in early July, Bitcoin’s price pulled back to approximately $117,000, underscoring the inherent risks of leveraged trading and fast-moving markets. While institutional interest and technical indicators support continued bullish potential, volatility remains elevated, making Schiff’s warnings of a potential sell-off especially relevant for cautious investors.
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