Peter Schiff Warns Bitcoin Could Plunge Below $20K as Complacency Sets In

Bitcoin critic Peter Schiff is back with another bleak BTC call, warning that the asset could collapse below $20,000 once it breaks through the $50,000 level. He made the prediction with Bitcoin trading at around $67,000, down more than 4% in 24 hours and over 16% across 30 days. Why Schiff Thinks the Worst Is Still Ahead for BTC According to Schiff, the real problem for Bitcoin isn’t the price drop itself but rather the mood surrounding the OG cryptocurrency. “There’s way too much complacency in Bitcoin for the market to be anywhere near a bottom,” he posted on X. “When Bitcoin breaks $50K, it should be a quick fall below $20K.” The gold advocate believes that drop will be big enough to shake the conviction of many long-term holders, enough for them to “finally throw in the towel.” Earlier, he had posted, wondering whether a BTC crash would take broader risk assets down with it or whether it would only be confined to digital assets, suggesting that either outcome could push investors toward “value and safety.” And for those that have been listening to him for a long time, that language tracks closely with his longstanding case for gold. Schiff also once again weighed in on Strategy, targeting its STRC stock. At the time he was writing, it was trading below $96, pushing its current yield to around 12%, which led the economist to argue that if investors lose confidence in the company’s ability to pay that yield, the price would continue to drop, which would force the firm to raise the official coupon to stabilize STRC at its $100 face value, something he described as a “death spiral.” That’s a pointed critique, considering Strategy recently sold part of its holdings, 32 BTC to be precise, for the first time since 2022, with the $2.5 million earned from the sale earmarked for preferred stock dividends. Remember, Michael Saylor’s company holds over 843,000 BTC, so for all intents and purposes, that 32 BTC that was sold was almost like a rounding error against its full position, but Schiff seems to be betting that the STRC structure is more fragile than it looks. What Others Are Saying Not everyone thinks an almighty BTC drop would shake the confidence of long-term HODLers as Schiff suggested, with crypto commentator Alex Marzell claiming that the only thing a move to $20K would test is his available cash. Bitget CEO Gracey Chen shared a similar opinion, saying she was waiting to buy Bitcoin near $50,000. According to her, the asset’s long-term health depends on global money printing pushing up commodities, including BTC and gold. However, she also pointed out that there were a few short-term risks, including CPI pressure and potential rate hikes, as well as possible selling by whales like Strategy and Mt. Gox creditors. Furthermore, she suggested that heavy AI-sector IPOs could drain a lot of liquidity from the market. Meanwhile, CryptoQuant head of research Julio Moreno said that the overall Bitcoin demand is contracting at a monthly pace of 232,000 BTC, and he added that the correction was down to weakening demand and not stock market or macroeconomic developments as other market watchers have previously suggested. His outlook matches a recent report from Bitfinex, which said that Bitcoin was entering a “slow bleed” phase that’s being driven by distribution and fading investor conviction. The post Peter Schiff Warns Bitcoin Could Plunge Below $20K as Complacency Sets In appeared first on CryptoPotato .