Economist and long-time Bitcoin (BTC) critic Peter Schiff has issued a novel warning to cryptocurrency investors, arguing that the world’s largest digital asset could face a acute decline if a key price level fails.
Schiff predicts a Bitcoin failure of 84%.
Thursday on social media post on X Schiff said a break below $50,000 would likely open the door to a much deeper sell-off. “If Bitcoin breaks $50,000, which seems likely, it seems very likely it will test at least $20,000,” he wrote.
He noted that a drop to that level would represent an 84% drop from Bitcoin’s all-time high of $126,000 reached last October. While acknowledging that Bitcoin has experienced similar crashes in the past, Schiff argued that the current environment is different.
He pointed to what he described as unprecedented hype, higher leverage in the system, greater institutional ownership and much larger overall market capitalization. “Sell Bitcoin Now!” he insisted.
BTC “doesn’t fit” as a reserve asset
Schiff, who has long advocated for gold as a great store of value, has repeatedly questioned Bitcoin’s role in the global financial system.
In the previous one interviewstated that BTC is unsuitable as a reserve asset for central banks, claiming that its volatility would make it impractical to hold vast amounts of BTC without causing market instability.
According to Schiff, while some sovereign wealth funds and governments have taken confined positions in Bitcoin-related products, these allocations remain miniature and are often motivated by performance pressure rather than deep conviction.
He also expressed skepticism about the durability of institutional demands. Schiff predicted that investor interest in Bitcoin could wane over time and cautioned that novel market entrants could ultimately suffer losses if prices fall sharply.
At the time of writing, the leading cryptocurrency is trading at $66,900, with the highest resistance level at $70,000 and lower support levels at $65,800 and $62,800, limiting additional losses in the near future.
Featured image from OpenArt, chart from TradingView.com
