$BTC Bitcoin’s future looks uncertain as economist and gold advocate Peter Schiff warns that a prolonged Nasdaq downturn could trigger a steep decline in the cryptocurrency’s price. According to Schiff, if the Nasdaq Composite officially enters a bear market, Bitcoin could fall below $65,000—and in a worst-case scenario, it might crash to $20,000 or even lower.

Bitcoin’s Correlation With Nasdaq Spells Trouble

In a social media platform X (formerly Twitter) post on March 16, Schiff highlighted the historical correlation between Bitcoin and Nasdaq. He pointed out that if a 12% Nasdaq correction translates into a 24% Bitcoin decline, then a 20% Nasdaq drop could push Bitcoin to around $65K.

However, Schiff cautioned that bear markets often result in much larger losses, referencing past financial crises such as the Dot-com bubble (2000), the 2008 financial crash, and the 2020 COVID-19 market collapse.

"If this bear market bottoms with just a 40% decline, that would put Bitcoin at about $20K. However, my bet would be that a drop of that magnitude would accelerate Bitcoin’s collapse to much lower levels," Schiff warned.

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 further argued that such a divergence between gold and Bitcoin would undermine Bitcoin’s credibility as a store of value, making it harder for governments to justify holding Bitcoin in strategic reserves.

ETF Investors May Dump Bitcoin Holdings

Schiff also predicted a wave of Bitcoin selloffs if the market downturn continues. He suggested that Bitcoin ETF investors could start liquidating their holdings, further accelerating the crash.

"With all that selling, it will be impossible for MicroStrategy (MSTR) to sell enough Bitcoin to avoid bankruptcy," he claimed, referencing Michael Saylor’s Bitcoin-heavy strategy.

However, Schiff later clarified that his statements were not a serious analysis but rather an observation. Still, he maintained that if the Nasdaq drops 20%, Bitcoin is likely to trade below $65K.

Bitcoin Bulls Remain Optimistic

Despite Schiff’s bearish outlook, many analysts remain bullish on Bitcoin’s long-term trajectory.

  • Tim Draper maintains his $250,000 Bitcoin price prediction for 2025.

  • Tom Lee expects Bitcoin to be the top-performing asset of the year.

  • Standard Chartered projects a future $500,000 Bitcoin valuation.

  • Michael Saylor envisions Bitcoin reaching $13 million by 2045.

Additionally, the White House Crypto Summit has reinforced market confidence, with former President Donald Trump expressing support for Bitcoin and discussing a strategic Bitcoin reserve.

Conclusion

Peter Schiff’s warnings serve as a reminder of Bitcoin’s volatility and its correlation with traditional markets. While some believe that a Nasdaq bear market could drive Bitcoin below $65K—or even as low as $20K—others argue that regulatory clarity, institutional adoption, and halving cycles will sustain Bitcoin’s upward momentum.

Investors should closely monitor macroeconomic trends and market movements to navigate potential risks and opportunities in the evolving crypto landscape.

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