Renowned economist Peter Schiff has predicted that Bitcoin could fall 85% if the NASDAQ enters a bear market.
Bourse Down 12%
Peter Schiff noted the NASDAQ was currently down 12% and suggested that it could affect Bitcoin. At the time of writing, Bitcoin was trading at $83,235.82, experiencing a slight decrease, according to CoinMarketCap data. This is significantly lower than the all-time high of $109,200 on January 20, 2025. As concerns about market volatility grow, there is fear this may impact broader cryptocurrency markets.
Bitcoin Could Fall Below $20K
Furthering his pessimism, Peter Schiff suggested that if the NASDAQ were to enter a bear market, historical data shows it could be much steeper. He cited the Dot-Com bubble, the 2008 financial crisis, and the COVID-19 pandemic, where respective falls were significant. The average decline from these bear markets was about 55%.
Divergence between Gold and Bitcoin
Peter Schiff also observed a divergence between gold and Bitcoin. As Bitcoin faces a crisis, gold is reportedly showing positive trends with an inverse relationship to NASDAQ, having surged by 13% since its 2023 peak. If the NASDAQ were to decline by 40%, gold could reach $3,800 per ounce, further distancing itself from Bitcoin's volatility. The economist argues that this divergence challenges the notion of Bitcoin as 'digital gold'.
Despite Bitcoin's recent 121% market value increase in 2024, Peter Schiff remains firmly bearish, asserting that Bitcoin’s price will fall while gold will rise. Market history, however, shows the digital asset persisting and thriving despite negative forecasts.
