Bitcoin is struggling to break past $84,000, and with the U.S. stock market facing a sharp correction, bearish predictions are mounting.
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Economist Peter Schiff warns that if the Nasdaq suffers a major downturn, Bitcoin could plunge to $20,000. Schiff points to Bitcoin’s history of moving in sync with the Nasdaq, which has already dropped 12%. If the index falls further—potentially slipping into bear market territory—a steeper Bitcoin decline could follow. Based on past trends, a 20% Nasdaq drop might send Bitcoin toward $55,000, while a more dramatic downturn could push it even lower.
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Highlighting previous market crashes, Schiff recalled the Nasdaq’s 80% collapse during the dot-com bust, its 55% decline in 2008, and the 30% dip in 2020. If the index experiences a 40% drop, he believes Bitcoin could spiral to $20,000, triggering an even deeper sell-off. Bloomberg’s Mike McGlone shares a similarly bearish outlook, predicting Bitcoin could dip to $10,000.
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Investors Shift Focus from Memecoins to Fundamental Altcoins While Bitcoin struggles, gold has been on the rise, climbing 13% since the Nasdaq’s peak in December. Schiff suggests that if stocks continue to tumble, gold could surge past $3,800, especially if the U.S. dollar weakens. This widening gap between gold and Bitcoin challenges the idea of Bitcoin as a “digital gold,” potentially discouraging institutional investors and governments from holding it as a reserve asset.
Schiff also warns that heavy selling pressure could put Bitcoin-backed companies in a tough spot. If prices collapse, firms like MicroStrategy might struggle to liquidate their holdings fast enough to avoid financial distress.
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Despite market uncertainty, Bitcoin has remained relatively stable over the weekend, trading at $83,742, down 0.66%. However, daily trading volume has jumped by 79% to over $23.21 billion, indicating increased activity as traders prepare for the Federal Reserve’s next move.
Alexander Stefanov
