Bitcoin’s Doomsday Prediction: Schiff’s 85% Price Crash Warning

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As the esteemed American economist Peter Schiff prepares for the impending doom of Bitcoin, one cannot help but wonder if the cryptocurrency’s fate is sealed. Like a Cassandra, Schiff prophesies a catastrophic 85% price drop, a prediction that has sent shivers down the spines of even the most stalwart Bitcoin enthusiasts.

But, like a Socratic gadfly, Schiff’s words are not without their sting. He suggests a correlation between gold, NASDAQ, and Bitcoin, where a decline in NASDAQ leads to a decrease in Bitcoin. And, as the NASDAQ is currently down 12%, one cannot help but ponder the possibilities.

NASDAQ-Bitcoin: A Dance of Doom

Schiff’s words are laced with a sense of inevitability, as if the very fabric of the market is conspiring against Bitcoin. “If this correction turns out to be a bear market, and the correlation where a 12% decline in the NASDAQ equates to a 24% decline in Bitcoin holds, when the NASDAQ is down 20%, Bitcoin will be about $65K,” he warns.

The NASDAQ is down 12%. If this correction turns out to be a bear market, and the correlation where a 12% decline in the NASDAQ equates to a 24% decline in Bitcoin holds, when the NASDAQ is down 20%, Bitcoin will be about $65K.

But if the NASDAQ goes into a bear market, history…— Peter Schiff (@PeterSchiff) March 16, 2025

However, Schiff’s argument is not without its precedents. He cites the bursting of the Dot-com bubble, the 2008 global financial crisis, and the pandemic crash of 2020, where NASDAQ plummeted by nearly 80%, 55%, and 30% respectively. The average of these bear markets is a 55% decline, a prospect that sends shivers down the spines of even the most ardent Bitcoin enthusiasts.

Gold: The Shining Star

But, like a ray of sunshine, Schiff’s words on gold offer a glimmer of hope. He suggests a negative relationship between NASDAQ and gold, where a decline in NASDAQ leads to an increase in gold. Since the NASDAQ peaked on December 16, 2023, gold has increased by 13%, a correlation that is almost perfect.

“If that correlation holds too, a 40% drop in the NASDAQ would put gold over $3,800. However, my guess is that if a bear market in stocks coincides with a significant decline in the dollar on foreign exchange markets, gold will rise much higher,” he explained in a post.

Gold and Bitcoin: A Tale of Two Assets

Schiff’s words on gold and Bitcoin offer a sobering perspective on the two assets. Even if gold were at $3,800 and Bitcoin were at $20,000, in terms of gold, the firstborn crypto would decrease by 85%. A prospect that would render Bitcoin a poor store of value compared to gold.

“There will clearly be no justification for the US government or any state government to keep any Bitcoin in a Strategic Reserve. There will also be no reason for ETF investors to keep holding their positions either. With all that selling, it will be impossible for $MSTR to sell enough Bitcoin to avoid bankruptcy,” he said.

As of writing, Bitcoin is traded at $82,433 with a market cap of over $1.6 trillion.

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2025-03-19 06:44