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Peter Schiff, an economist and supporter of gold, has expressed sharp concerns about the future of Bitcoin, claiming that a protracted NASDAQ drop could significantly impact the price of the cryptocurrency. In a March 16 post on the social media site X, Schiff highlighted the state of the market, saying:
The NASDAQ is falling 12 percent. If this correction shows to be a bear market and the correlation that a 12% decrease in the NASDAQ corresponds to a 24% drop in Bitcoin remains true, Bitcoin will be estimated at $65K when the NASDAQ falls 20%.
He was concerned that bear markets typically create considerably more significant drops. Citing the Dot-com bubble, the 2008 financial crisis, and the 2020 COVID-19 crash as instances of previous catastrophic market declines, he stated, "If the NASDAQ goes into a bear market, history indicates that the decrease will be much larger."
Peter Schiff Predictions about Bitcoin
The analyst concluded that Bitcoin may drop even more rapidly if NASDAQ notices a significant decrease. "Bitcoin would be estimated at $20,000 if this bear market broke out with a 40% drop. But I would guarantee that a decline of that size would speed up the drop of bitcoin to far lower depths," the gold bug highlighted.
Additionally, he saw that gold rose 13% from the NASDAQ's peak in December 2023 and transferred in the opposite direction of the index. He indicated that gold would reach $3,800 if this pattern holds and the stock market loses, especially if the US dollar drops.
Schiff has long argued that bitcoin lacks the same historical strength as gold, making gold an ideal hedge against economic inflation. He also projected that an opposition between gold and bitcoin would further destroy the latter's legitimacy.
Bitcoin Market Speculations
"There will certainly be no explanation for the U.S. government or any state government to maintain any bitcoin in a strategic reserve, given that such a separation will likely end the pretence that bitcoin is a store of value more likely to gold," he stated. He also worried there might be a sell-off as investors sold their bitcoin exchange-traded fund (ETF) holdings. Schiff stated:
Investors in ETFs won't have any encouragement to hang onto their shares either. MSTR [Microstrategy] won't be able to dump more Bitcoin to stay out of bankruptcy with all that selling.
Schiff admitted, though, that his explanation lacked a "serious analysis." "It's not meant to be," he justifies. Just carrying it up. I estimate that bitcoin will be less than $65K if the NASDAQ decreases 20%.
Many bitcoin cost predictions are still upbeat after the decline, thanks to authorities in regulations and industry leaders. Tom Lee indicates that bitcoin will be the most successful asset of 2025, while Tim Draper maintains his $250,000 prediction. Michael Saylor anticipates a $13 million valuation by 2045, while Standard Chartered estimates a $500,000 valuation.
Recently, Abra CEO Bill Barhydt and former Binance CEO Changpeng Zhao (CZ) indicated the stability and uptake of Bitcoin. President Trump's endorsement and proposal for an adequate bitcoin reserve throughout the White House Crypto Summit indicated a change towards more positive regulation and bolstered market Confidence.
