Economist and gold advocate Peter Schiff has issued a warning about a potential significant decline in Bitcoin's price should the Nasdaq market continue its downward trend.
Bitcoin's Correlation With Nasdaq Spells Trouble
In a post on social media platform X (formerly Twitter) on March 16, Schiff highlighted the historical correlation between Bitcoin and Nasdaq. He noted that if a 12% Nasdaq correction leads to a 24% Bitcoin decline, then a 20% drop in Nasdaq could push Bitcoin to around $65K.
Gold Gains While Bitcoin Struggles
Schiff emphasized the contrasting performance of gold, which has surged 13% since Nasdaq’s peak in December 2023. He predicted that if this trend continues and the stock market plunges, gold could surpass $3,800, especially if the U.S. dollar weakens. He suggested that such divergence between gold and Bitcoin would undermine Bitcoin’s credibility as a store of value.
ETF Investors May Dump Bitcoin Holdings
Schiff also forecasted a potential wave of Bitcoin sell-offs if the market downturn continues. He suggested that Bitcoin ETF investors could start liquidating their holdings, further accelerating the crash.
Peter Schiff's warnings illustrate Bitcoin's volatility and its correlation with traditional markets. While a Nasdaq bear market could potentially drive Bitcoin below $65K or even to $20K, others believe in its long-term ascent driven by regulatory clarity and institutional adoption.
