Peter Schiff Predicts Bitcoin (BTC) Could Crash to $60,00 as NASDAQ Slumps 12%

According to Schiff, with the NASDAQ currently down 12%, the possibility of a full-blown bear market could send Bitcoin into a steep decline.

Peter Schiff, the renowned Bitcoin skeptic and chief economist at Schiff اقتصادي, recently took to X, formerly known as Twitter, to share his thoughts on the financial market and its implications for Bitcoin.

As the NASDAQ index slides further into a bear market, Schiff predicts that Bitcoin could be dragged down significantly. With a 12% drop in the NASDAQ correlating to a 24% decrease in Bitcoin, a 20% decline in the NASDAQ could send Bitcoin to around $65,000.

However, Schiff believes that a $65K dip in Bitcoin is "a joke" compared to where he really expects the flagship cryptocurrency to crash. To illustrate his point, he delves into past bear market data.

During the Dot-com bubble burst, the NASDAQ experienced a massive decline of 80%. Similarly, the 2008 Global Financial Crisis (GFC) saw a 55% drop in the index, and the COVID crash of 2020 led to a 30% decrease in the NASDAQ.

Schiff suggests that if this bear market follows a similar trajectory, Bitcoin could be in serious trouble. In his worst-case scenario, he predicts that Bitcoin could crash to $20,000 or lower.

Gold’s Positive Correlation with NASDAQ Decline

While Schiff is bearish on Bitcoin, he is more optimistic about gold, which he expects to see rise significantly more than Bitcoin.

He highlights a negative correlation between the NASDAQ and gold. Since the NASDAQ reached its peak in December 2023, Schiff notes that gold prices have increased by 13%.

This trend suggests that gold may continue to rise as the NASDAQ falters. If the index undergoes a 40% drop, Schiff predicts that gold could surge above $3,800 per ounce.

Moreover, Schiff speculates that if a bear market in stocks coincides with a decline in the U.S. dollar on the foreign exchange market, gold could see an even more substantial rally.

In his view, this would contrast sharply with Bitcoin's likely downfall, confirming his belief that gold will remain a more stable store of value during periods of market volatility.

Bitcoin Decline Could End Its Store of Value Appeal

Schiff argues that even if Bitcoin were to stabilize at around $20,000 and gold reached $3,800, Bitcoin would still be down more than 85% in comparison to gold.

This sharp divergence would undermine Bitcoin's reputation as a store of value akin to gold, in his opinion.

In his view, this would prompt governments and institutional investors to abandon Bitcoin altogether.

Schiff predicts that the U.S. government, along with other state entities, would no longer feel the need to hold Bitcoin in their strategic reserves.

In parallel, exchange-traded fund (ETF) investors might start selling their Bitcoin positions, further driving the market down. Schiff projects that the selling pressure could be so intense that companies like Strategy (MSTR), which hold substantial Bitcoin reserves, could face bankruptcy if they fail to sell enough of their holdings.

While Bitcoin continues to face volatility, Schiff's pessimistic outlook aligns with his long-standing skepticism of BTC. However, the crypto market has historically defied these pessimistic predictions.

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