Bitcoin vs Nasdaq: Why Schiff Predicts a Sharp Decline for BTC

Bitcoin vs Nasdaq – Could Nasdaq’s Bear Market Lead Bitcoin to Crash Below $20,000?

Bitcoin vs Nasdaq – Veteran investor and Bitcoin critic Peter Schiff has raised concerns about the potential future of Bitcoin (BTC) if the Nasdaq enters a bear market. According to Schiff, there is a strong correlation between the performance of U.S. tech stocks—particularly the Nasdaq—and Bitcoin’s price. Schiff pointed out that the Nasdaq has already fallen by 12% and warned that if this downturn evolves into a bear market, Bitcoin could face substantial declines.

Nasdaq Bear Market Could Trigger Bitcoin Collapse

Schiff’s forecast suggests that if the Nasdaq drops by 20%, Bitcoin could plummet to $65,000. He based his prediction on historical trends, referencing past bear markets when the Nasdaq experienced significant drops. For instance, after the Dot-com bubble burst, the Nasdaq fell by nearly 80%. During the 2008 financial crisis, it dropped by 55%, and during the 2020 COVID crash, it declined by around 30%. If the Nasdaq suffers a 40% drop this time, Schiff predicts that Bitcoin could fall to $20,000 or even lower.

Bitcoin’s Potential Vulnerability Amid Stock Market Volatility

Despite Bitcoin’s rally this year, driven by institutional investments in spot Bitcoin ETFs and growing mainstream adoption, Schiff warns that a stock market crash could cause mass liquidations, putting additional pressure on Bitcoin’s price. He emphasized that such a large-scale decline could further accelerate Bitcoin’s downfall, pushing its value to even lower levels.

Gold Outperforms Nasdaq: A Sign of Future Market Shifts

In addition to his warning about Bitcoin, Schiff noted that the correlation between the Nasdaq and gold has been negative. Since the Nasdaq’s peak on December 16, 2023, gold has risen by 13%, showcasing an almost perfect inverse relationship. Schiff predicts that if stocks continue to decline and the U.S. dollar weakens, gold could rise above $3,800 per ounce.

Impact on Bitcoin’s Role as a Store of Value

Schiff believes that these developments could undermine Bitcoin’s credibility as a store of value. He suggested that if Bitcoin continues to diverge from gold, it could weaken the case for governments to hold Bitcoin as part of their strategic reserves.

This growing uncertainty has sparked debate about Bitcoin’s future role in the market.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.