Bitcoin (BTC) Can Fall Back to $20,000 Again? Peter Schiff Said "Yes," Explained Why!

Bitcoin has fallen below $80,000 in recent weeks, increasing expectations of further declines.

At this point, gold advocate and Bitcoin critic Peter Schiff claimed that if the Nasdaq enters a bear market, the price of Bitcoin could drop to $20,000.

20 Thousand Dollars Back on the Table in Bitcoin!

As the Bitcoin price struggles to break above the $84,000 resistance level, the expectation of a decline for BTC is also increasing.

In the midst of the sharp correction in the US stock market over the past few weeks, Nasdaq fell by 12%.

Popular economist Peter Schiff said he believes that things could get worse for BTC if this correction further slides towards a bear market, and if Nasdaq corrects by 40% from its peak and enters a bear market, BTC price could drop to $20,000.

Bitcoin price and Nasdaq, which Schiff says have a historical correlation, usually translates to a 12% Nasdaq drop corresponding to a 24% drop in Bitcoin, which could bring BTC down to around 65,000. dollars.

At this point, referring to historical data, Schiff stated that Nasdaq fell by approximately 80% during the Dot-com bubble, 55% during the 2008 financial crisis, and 30% during the 2020 COVID collapse.

Considering a potential average drop of 55%, Schiff argued that even a 40% drop in the Nasdaq index could bring BTC down to $20,000.

If Nasdaq falls by 12%, and it turns out that this correction is a bear market, and if the correlation continues that a 12% drop in Nasdaq is equal to a 24% drop in Bitcoin, when Nasdaq falls by 20%, Bitcoin will be approximately 65,000 dollars.

However, if Nasdaq enters a bear market, history shows that the decline will be much larger.

After the dot-com bubble burst, Nasdaq dropped nearly 80%. It dropped 55% during the 2008 Global Financial Crisis and about 30% during the 2020 COVID collapse.

The average of these three bear markets is a 55% decline. Even if this bear market hits bottom with only a 40% decline, it will take Bitcoin to around $20,000. However, my prediction is that a drop of this magnitude will take Bitcoin's collapse to much lower levels.