Bitcoin rose over $2,000 ahead of U.S. President Donald Trump’s State of the Union speech, but longtime critic Peter Schiff is warning that the price surge may be short-lived, driven more by speculation than real market strength. Schiff, a prominent gold advisor and vocal skeptic of cryptocurrencies, has raised concerns that the rally is tied to anticipation of a potential mention of Bitcoin in the speech rather than fundamental demand.

Speculation and the Risk of a ‘Sell-the-News’ Pullback

In a recent post on X, Schiff questioned the sustainability of Bitcoin’s recent price jump, suggesting that traders may have anticipated a reference to the cryptocurrency in Trump’s speech and bought ahead of the event. Schiff noted that if Bitcoin is not mentioned, the price could fall due to disappointment. Even if it is mentioned, he warned that insiders who bought before the speech might sell the news, triggering a pullback.

“Bitcoin spiked. I wonder if Trump crypto bros managed to slip a Bitcoin reference into the SOTU address,” Schiff wrote. “If Bitcoin isn’t mentioned at all, I expect it to sell off. If it is mentioned, it’s still likely to sell off as Trump insiders who bought ahead of the speech sell the news.”

Schiff’s concerns align with broader fears among analysts about a potential ‘sell-the-news’ scenario, where prices drop after a major event like the SOTU speech. The Bitcoin price, which had climbed from around $64,000 to nearly $66,000, is currently at $64,967, up 3.6% in a day but still down 4% and 26% over the past week and month, respectively.

Bitcoin’s Recent Surge and Uncertain Outlook

The recent Bitcoin price surge was reportedly driven by speculation that Trump might mention the cryptocurrency in his speech. However, no official confirmation has been made that such a reference occurred. The SOTU address, the longest in history, focused primarily on economic policies and affordability, with little mention of cryptocurrency.

“He should talk this way every day. This was a good speech on the affordability. An hour was spent on it, and that’s what he should be dwelling on,” said Rep. Don Bacon, a Republican from Nebraska. His comments suggest that the focus of the speech was not on Bitcoin or other cryptocurrencies.

Schiff has previously warned of a potential Bitcoin price crash to $20,000 and urged investors to sell their holdings before a downturn. His comments echo those of other experts, including JPMorgan CEO Jamie Dimon, who has warned of a potential 2008-style market crash.

“I want to make sure that people don’t buy Bitcoin instead of gold,” Schiff added. “Bitcoin pumpers are trying to convince would be gold buyers to buy ‘digital gold’ instead of the real thing.”

Market Watchers Await the Next Move

With the Bitcoin price currently hovering around $65,000, traders are closely watching whether it can hold above this level or if Schiff’s predicted ‘sell-the-news’ reaction begins to take effect. The coming days will be critical in determining whether the recent rally was a genuine sign of strength or merely a short-term spike driven by speculation.

Analysts are also keeping an eye on broader market trends, including the performance of gold and other assets, to gauge whether investors are shifting their focus from cryptocurrencies to more traditional safe-haven assets. The outcome of the SOTU speech and any subsequent market reactions will provide further clarity on the direction of Bitcoin’s price in the coming weeks.