Peter Schiff, a well-known economist, isn’t optimistic about Bitcoin’s future. He predicts a massive price drop, potentially as much as 85%, if the stock market takes a dive.
Bitcoin and the NASDAQ: A Troubling Correlation?
Schiff sees a strong link between the NASDAQ and Bitcoin’s price. He argues that when the NASDAQ falls, Bitcoin follows suit. With the NASDAQ currently down 12%, he’s worried. He suggests that if this downturn turns into a full-blown bear market, a similar percentage drop in Bitcoin could see its price fall to around $65,000.
But Schiff believes things could get much worse. He points to past market crashes:
- Dot-com bubble burst: NASDAQ fell nearly 80%.
- 2008 financial crisis: NASDAQ dropped 55%.
- 2020 pandemic crash: NASDAQ fell about 30%.
Averaging these, he estimates a potential 55% drop in the NASDAQ during a bear market. If that happened, Bitcoin could plummet to around $20,000. However, Schiff thinks the actual Bitcoin drop could be even more severe.
Gold: A Safe Haven?
While pessimistic about Bitcoin, Schiff is bullish on gold. He sees an inverse relationship between gold and the NASDAQ. As the NASDAQ peaked in December 2023, gold rose by 13%, suggesting a strong correlation. He predicts that a 40% drop in the NASDAQ could push gold prices above $3,800. He even suggests that a weaker dollar could drive gold prices even higher.
Bitcoin vs. Gold: The Ultimate Showdown
Schiff concludes by comparing gold and Bitcoin. Even if gold reaches $3,800 and Bitcoin stays at $20,000, he says Bitcoin would still have lost a staggering 85% of its value relative to gold. This, he argues, would completely undermine Bitcoin’s status as a store of value, impacting everything from government reserves to ETF investments./p>
