Well-known economist and Bitcoin critic Peter Schiff has once again voiced his concerns about the connection between Bitcoin and NASDAQ, suggesting that when NASDAQ falls, Bitcoin tends to drop even harder.
Bitcoin Follows NASDAQ’s Lead
In a recent post on X (formerly Twitter), Schiff pointed out that NASDAQ has already dropped 12%, and if this trend continues into a full-blown bear market, Bitcoin could take a big hit.
He explained that based on past trends, a 12% drop in NASDAQ typically results in a 24% drop in Bitcoin. If NASDAQ ends up losing 20%, Bitcoin could fall to around $65,000.
Schiff didn’t stop there. He warned that if NASDAQ enters a deeper bear market, like it has in past economic crises, Bitcoin could drop much lower.
Looking at history:
- Dot-com Crash (2000-2002) → NASDAQ dropped nearly 80%
- 2008 Financial Crisis → NASDAQ lost 55%
- COVID-19 Crash (March 2020) → NASDAQ fell around 30%
If this time the decline is around 40%, Schiff predicts Bitcoin could crash to $20,000 or even lower.
“A drop of that size could trigger an even bigger Bitcoin collapse,” Schiff added.
Gold Continues to Rise
While Schiff remains bearish on Bitcoin, he is bullish on gold. He highlighted a negative relationship between NASDAQ and gold—when NASDAQ goes down, gold goes up.
Since NASDAQ’s peak on December 16, 2023, gold has risen 13%. If this trend holds, Schiff believes that if NASDAQ drops 40%, gold could surpass $3,800 per ounce.
He also speculated that if the stock market crash is accompanied by a decline in the US dollar’s value, gold prices could rise even higher.
Bitcoin vs. Gold: Store of Value Debate
Schiff took another shot at the argument that Bitcoin is “digital gold” or a safe store of value.
He pointed out that if Bitcoin falls to $20,000 while gold climbs to $3,800, the value of Bitcoin in terms of gold would drop by 85%. This, he argues, would prove that Bitcoin isn’t a stable store of value like gold.
“There will be no reason for the U.S. government or any state government to hold Bitcoin in a strategic reserve. ETF investors will likely sell off their holdings too. And with all that selling pressure, even MicroStrategy (MSTR) won’t be able to offload enough Bitcoin to avoid bankruptcy,” Schiff predicted.
Current Market Situation
As of now, Bitcoin is trading at $82,433, with a market cap of over $1.6 trillion. But if Schiff’s predictions come true, Bitcoin investors could be in for a rough ride.
What do you think? Will Bitcoin crash as NASDAQ drops, or will it break free from the stock market’s influence?
Peter Schiff: If NASDAQ Drops, Bitcoin Could Crash Hard – admin