Synopsis
Peter Schiff warned that Bitcoin could face a sharp decline if the Nasdaq enters a bear market. He noted that past crashes saw the index drop up to 80% and predicted that if it falls 40% this time, Bitcoin could plunge to $20,000 or lower. Schiff sees Bitcoin’s correlation with stocks as a major risk.
Bitcoin’s price movements have often been linked to the performance of U.S. tech stocks, particularly the Nasdaq. According to veteran investor and Bitcoin critic Peter Schiff, this correlation could spell trouble for the world’s largest cryptocurrency if the Nasdaq enters a bear market.
Schiff’s prediction: Bitcoin to $20k?
Schiff noted that the Nasdaq is already down 12% and warned that if this correction turns into a full-blown bear market, Bitcoin could face a sharp decline. “If the Nasdaq is down 20%, Bitcoin will be about $65K,” he wrote in a post on X (formerly Twitter).
Citing historical data, Schiff highlighted that past bear markets saw the Nasdaq drop significantly. “After the Dot-com bubble burst, it fell nearly 80%. During the 2008 financial crisis, it declined 55%, and in the 2020 COVID crash, it dropped about 30%,” he said. If the index falls 40% this time, Schiff predicts Bitcoin could plunge to $20,000 or lower.
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TOP COIN SETSWeb3 Tracker15.93% BuyNFT & Metaverse Tracker12.09% BuyCrypto Blue Chip – 56.44% BuyDeFi Tracker4.26% BuySmart Contract Tracker3.40% BuyTOP COINS (₹) BNB54,473 (3.11%)BuyBitcoin7,223,445 (-1.54%)BuyEthereum164,709 (-1.9%)BuyXRP202 (-2.68%)BuySolana11,118 (-5.44%)BuyWhile Bitcoin has rallied this year, fueled by institutional inflows into spot Bitcoin ETFs and growing mainstream adoption, Schiff argues that a stock market crash could trigger mass liquidations, pressuring Bitcoin further. “A drop of that magnitude would accelerate Bitcoin’s collapse to much lower levels,” he warned.
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View Details »Meanwhile, Schiff pointed out that the correlation between the Nasdaq and gold has been negative. “Since the Nasdaq peaked on Dec. 16, 2023, gold is up 13%, almost a perfect 1-to-1 inverse correlation,” he said. If stocks decline sharply and the dollar weakens, Schiff predicts gold could rise above $3,800 per ounce.
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He also suggested that such a scenario could undermine confidence in Bitcoin as a store of value. “Since this divergence would likely shatter the notion that Bitcoin is comparable to gold, there would be no justification for the US government or any state government to hold Bitcoin in a Strategic Reserve,” he added.
The NASDAQ is down 12%. If this correction turns out to be a bear market, and the correlation where a 12% decline in the NASDAQ equates to a 24% decline in Bitcoin holds, when the NASDAQ is down 20%, Bitcoin will be about $65K.
But if the NASDAQ goes into a bear market, history…
— Peter Schiff (@PeterSchiff) March 16, 2025
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
