Details About Peter Schiff's Prediction That BTC Will Drop 85% to $20,000 If NASDAQ Falls

The famous American economist Peter Schiff has made a gloomy prediction about the challenges that Bitcoin may face if NASDAQ enters a bearish market, claiming that the value of this digital asset will fall by 85%. According to a post on X by the American stockbroker and Bitcoin critic, any decline in NASDAQ leads to a decrease in the value of Bitcoin.

The stock exchange fell 12% Peter Schiff notes that the exchange has now fallen by 12% and it is very likely that this decline could easily affect leading cryptocurrencies. At the time of writing, Bitcoin is trading at 83,235.82 and has undergone a slight bearish trend, according to data from CoinMarketCap. The current price is much lower than the all-time high of 109,200 dollars on January 20, 2025. There is growing fear that the ongoing volatility could further impact the cryptocurrency market as a whole. Writing on his X handle, the economist stated: "If this correction becomes a bearish market and the correlation between the 12% fall of NASDAQ and the 24% fall of Bitcoin remains intact, when NASDAQ falls by 20%, the price of Bitcoin will be around 65,000 dollars." Bitcoin may fall below 20,000 dollars Continuing his bearish sentiment, Peter Schiff also argued that if the exchange participates in a nearby market, there is historical evidence suggesting that this time it could be much steeper. He cited the Dot-com bubble, when the stock exchange fell more than 80%, the financial crisis of 2008, when the drop was 55%, and the COVID-19 pandemic that caused NASDAQ to fall over 30%. According to Schiff, the average of the three bear markets is a fall of 55%. He further wrote that: "If this bearish market hits the bottom with a drop of only 40 percent, then Bitcoin will be at around 20,000 dollars. However, a drop at that level will accelerate Bitcoin's collapse to much lower levels." The difference between Gold and Bitcoin In contrast to the serious crisis that Bitcoin seems to be facing, Peter Schiff observes that gold is currently showing a positive sentiment with an inverse relationship to NASDAQ. Gold is reported to have risen at least 13% since its peak in December 2023. Schiff argues that if the stock exchange experiences a 40% correction, gold could reach $3,800 an ounce, further separating itself from the volatility of Bitcoin. This economist stated that the difference between gold and Bitcoin challenges the assertion that BTC is "digital gold" and its position as a store of value. He further asserted that if the price of Bitcoin falls to $20,000 and the price of gold continues to rise, governments and institutions will reconsider Bitcoin's position as a potential reserve asset. He declared: "There will be no valid reason for the U.S. government or any state government to hold any Bitcoin in the Strategic Reserve. There will also be no reason for ETF investors to hold their positions. With all those sell-offs, $MSTR will not be able to sell enough Bitcoin to avoid bankruptcy." Conclusion Schiff once again evaluates Bitcoin negatively despite its recent success, as the value of this asset has increased by over 121% in 2024, compared to a 27.21% increase in gold. Schiff strongly believes that the price of BTC will continue to fall while the price of gold will continue to rise. However, there is clear evidence that despite the negative expectations, this digital asset consistently outperforms and thrives.