Treasury Market Breakdown Could Spark Crash Across Stocks, Real Estate, and Cryptocurrencies

Economist Peter Schiff has renewed his bearish outlook on the US financial markets. He warns that a breakdown in the U.S. Treasury market could trigger a broad selloff across stocks, real estate, and cryptocurrencies while driving investors toward gold.

The benchmark 10-year U.S. Treasury yield is currently around 4.5%, with the 30-year yield approaching 5%. Schiff believes these levels could climb even higher, which would translate into more expensive borrowing costs for the stock market and make housing less affordable.

He points to Freddie Mac data showing that the average 30-year fixed mortgage rate remains near 6.49%, discouraging prospective homebuyers. A deeper slowdown in the housing market would eventually force the Federal Reserve to intervene with additional monetary easing, which Schiff believes would fuel inflation and strengthen the long-term case for precious metals.

Gold has already benefited from growing economic uncertainty, trading above $4,100 per ounce after briefly falling below $4,000 in June. However, Schiff dismissed claims that Bitcoin functions as a safe-haven investment, arguing that it tends to move alongside technology stocks during market downturns rather than providing protection.

He also criticized Wall Street's bullish forecasts for the cryptocurrency, pointing to the muted performance of Strategy’s preferred shares as evidence that investors may be less confident than public price targets suggest. Despite his warning, Schiff acknowledged that his outlook depends on Treasury yields continuing to rise.