- Peter Schiff, economist and notorious Bitcoin Opponent, sees the BTX course at $ 20,000 if the Nasdaq corrects by 40%.
- His prediction is based on the direct correlation between the two assets and the Bitcoin decline of 24%.
Bitcoin (BTC) fights for a decisive increase over the price level of $ 84,000 after an unexpected market liquidation dropped the asset in just one month from $ 96,000. At the time of going to press, the asset was traded at $ 83,000 and was over in the last 24 hours 1 % and in the last 30 days around 14,9 % sunk. In the meantime, things are expected to get worse because the renowned economist Peter Schiff bursts a bomb.
In his latest analysis, Schiff found that Bitcoin could fall to $ 20,000 as soon as the Nasdaq drops out of the highest level by 40 % and entered the bear market. Just like the broad crypto market, the US stock market also experienced serious corrections last week, with the NASDAQ lost 12 % of its profits, as we explained in our latest blog post.
If you look at this analogy from a historical perspective, Bitcoin usually maintains a close correlation with the NASDAQ. According to the data, a decrease of 12 % in the case of stock values usually corresponds to a decrease of 24 % in Bitcoin. Based on the current level, the Bitcoin price is $ 65,000. A decline in NASDAQ by 20 % could press the Bitcoin course to $ 55,000.
In his contribution, Schiff pointed out that the Nasdaq experienced an even more brutal decline to get into the Baissezone. A typical example is the decline of 80 %, which was recorded during the Dotcom bubble. He also fell 55 % during the financial crisis in 2008 and lost 30 % of its value during the Covid period in 2020. According to his calculations, the asset has an average decline of 55 %. But even a decline of 40 % could be a disaster for Bitcoin.
Schiff’s assessment of Bitcoin
In the further analysis of ship analysis, we found that other assets, including gold, have a negative correlation with the NASDAQ. According to him, this has been the case since December 16, 2023. This means that a decline in the NASDAQ could lead to gold over $ 3,800.
“Since the Nasdaq height on December 16, 2023, gold has risen by 13 %, which corresponds to an almost perfect 1: 1 correlation. Dollars collapses on the foreign exchange markets. “
In comparison between the two assets, Schiff said that Bitcoin would mean a full decrease of 85 % at $ 20,000. However, the gold value of $ 3,800 would show that Bitcoin would be a value preservation means like gold. According to him, this would weaken the justification of the US government or a state authority to include Bitcoin in the national strategic reserve.
“Even for ETF investors, there would be no reason to keep their positions.
As CNF reported, analyst Michael van de Poppe believes that Bitcoin can make a change as soon as he has reached the $ 84k brand,
Against this background, US President Donald Trump signed a decree to set up a strategic Bitcoin reserve. The inclusion of XRP, Ada, Sol and ETH in the crypto reserve is also considered.
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