Bitcoin Price Could Plunge to $20K if Nasdaq Enters Bear Market, Warns Peter Schiff
Peter Schiff, an economist, is warning that Bitcoin could go as low as $20,000 if the Nasdaq goes into a bear market.
His bearish call comes from the historical correlation between the Nasdaq and Bitcoin.
Bitcoin is struggling to break above $84,000 and various bearish calls are getting stronger as the US stock market gets more volatile. Schiff says a 40% correction in the Nasdaq would hurt Bitcoin badly and take it much lower than where it is now.
When the market’s down, what keeps me motivated to show up in Web3 every day is the long-term vision of a decentralized future. Bear markets, like the 2022 crypto crash that saw Bitcoin dip below $20K, are tough, but they’re also where innovation thrives. I’m driven by the belief
— Kim Ngân (@KimNgan17031998) March 14, 2025
Nasdaq’s Bearish Impact on Bitcoin Prices
The Nasdaq has dropped 12% in the past few weeks and Schiff notes that Bitcoin follows the Nasdaq closely. Historically a 12% drop in the Nasdaq has coincided with a 24% drop in Bitcoin’s price. If the Nasdaq continues to drop 20% Bitcoin could go to around $55,000.
But Schiff warns it could get worse if the market has a bigger correction like those in the past. The Dot-com bubble saw the Nasdaq drop 80% and the 2008 financial crisis saw the Nasdaq drop 55%. If the Nasdaq drops 40% Bitcoin could go to $20,000 a level that would raise more questions about the cryptocurrency’s stability in the overall market.
Bitcoin’s Historical Decline with Nasdaq:
12% Nasdaq drop = 24% Bitcoin drop (~$65,000)
20% Nasdaq drop = Bitcoin near $55,000
40% Nasdaq drop = Bitcoin near $20,000
Schiff’s view is similar to other analysts like Bloomberg’s Mike McGlone who recently said Bitcoin could go to $10,000 in a big market crash.
When the market’s down, what keeps me motivated to show up in Web3 every day is the long-term vision of a decentralized future. Bear markets, like the 2022 crypto crash that saw Bitcoin dip below $20K, are tough, but they’re also where innovation thrives. I’m driven by the belief…
— Neo (@Neoo_Web3) March 14, 2025
The Divergence Between Bitcoin and Gold
While Bitcoin faces the threat of a sharp decline, gold is showing signs of strength, with a notable inverse relationship to the Nasdaq. Since the Nasdaq’s peak in December 2023, gold prices have surged by 13%. Schiff anticipates that if the Nasdaq undergoes a 40% correction, gold could reach $3,800 per ounce, further distancing itself from Bitcoin’s volatility.
Gold’s Gains:
+13% since Nasdaq peak (December 2023)
Schiff predicts $3,800 per ounce if Nasdaq drops 40%
Schiff believes this will challenge Bitcoin’s position as “digital gold” and its status as a store of value. If Bitcoin goes to $20,000 and gold keeps going up, governments and institutional investors will have to re-think Bitcoin as a reserve asset.
In summary, Schiff’s warning is about the increasing concerns on Bitcoin’s survivability during macroeconomic downturns. Traders and investors will be watching closely especially with the upcoming Fed decisions.
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