Bitcoin Faces 55% Plunge as Nasdaq Drops 8.21%
2min read Peter Schiff, a prominent critic of Bitcoin, has made a bold prediction that Bitcoin (BTC) prices will plummet to $20,000 or lower if the Nasdaq and broader stock market enter a bear phase. Schiff's prediction comes as the year 2025 begins with significant volatility in Bitcoin, which has been closely tracking the performance of U.S. stock indices. The Nasdaq Composite index has seen an 8.21% decline, while the Nasdaq 100 index has dropped by 6.16%. Bitcoin has experienced an 11.25% price reduction during this period, with a 0.5% decrease in market value the previous day and a 14.3% drop in the last month.
Ask Aime: What's the impact of the stock market's bear phase on Bitcoin's potential price drop, as predicted by Peter Schiff?
Schiff's bearish stance on Bitcoin is well-known, and he believes that the cryptocurrency is poised for further declines. He argues that Bitcoin prices will sink to $20,000 if stock market difficulties intensify, citing previous U.S. stock market crashes as warnings. The Nasdaq suffered a 55% drop in 2008 and an 80% plunge during the 2000 dot-com bubble crisis, and Schiff believes that Bitcoin displays the same risk factor for drastic market declines as the stock market.
In contrast to Bitcoin, gold has been demonstrating rising market strength. The starting price of gold per ounce in 2025 was $2,623.95, and its value has increased by 15.1% since then. Schiff supports gold investing and notes that the stock market tends to move against gold prices more visibly. He predicts that investors will choose gold as their safe-haven asset, as it will gain more value. The ongoing deterioration of the U.S. stock market has prompted Schiff to expect that gold prices will surpass $3,800 per ounce. Investors seeking safety amid uncertainty about Gold vs Bitcoin will choose gold over other assets like Bitcoin, making it their preferred option.
Schiff believes that institutional investors and retail participants will walk away from Bitcoin as they choose gold as a primary investment solution. He predicts that Bitcoin will lose its status as a store of value because government agencies, ETFs, and corporate investors, including microstrategy, will leave the Bitcoin market. Price volatility and fluctuation in Bitcoin values make investors doubt its value as an asset that would withstand market instability. Schiff evaluates Bitcoin negatively even after its recent success, predicting that its 121.28% market value elevation in 2024 will not persist since it outperformed gold’s 27.21% increase. He believes that the market deterioration will diminish Bitcoin demand, but gold prices will keep increasing.
Schiff's prediction comes as Bitcoin faces increasing competition from gold, which has been gaining market strength. The ongoing deterioration of the U.S. stock market has prompted Schiff to expect that gold prices will surpass $3,800 per ounce. Investors seeking safety amid uncertainty about Gold vs Bitcoin will choose gold over other assets like Bitcoin, making it their preferred option. Schiff believes that the value of Bitcoin as a store of value will decline when gold prices keep increasing. Still, Bitcoin experiences declines because of this failure to establish its status as a reliable inflation shield.
