Longtime Bitcoin critic Peter Schiff has reignited debate over the cryptocurrency’s prospects, warning that a break below $50,000 could trigger a sharp decline toward $20,000, an 84% drop from its all-time high.
Summary
- Peter Schiff warned that if Bitcoin fell below $50,000, it could fall to $20,000 – an 84% drop from its all-time high – urging investors to “sell Bitcoin now”.
- Schiff argued that while Bitcoin has suffered similar declines before, the current market carries higher risk due to increased leverage, institutional ownership, and overall market size.
- His comments sparked backlash against X, with users highlighting its long history of bearish calls and defending Bitcoin’s long-term value proposition as a globally liquid, censorship-resistant financial network.
Sell Bitcoin Now, Says Peter Schiff
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“I know Bitcoin has done this before,” he wrote, “but never with this much hype, leverage, institutional ownership and market cap at stake. Sell Bitcoin now!”
Schiff, a prominent gold advocate and frequent crypto skeptic, has long argued that Bitcoin price cycles resemble speculative bubbles fueled by liquidity and investor enthusiasm. Its latest warning comes amid renewed volatility in digital asset markets, where traders are closely watching key technical levels.
An 84% retracement would echo past bear markets. Bitcoin has already suffered declines of over 70% following euphoric rebounds, including following its 2017 peak and again following its 2021 peak. However, the asset structure has evolved significantly, with spot exchange-traded funds, corporate treasuries and institutional allocators now holding significant positions.
Schiff’s latest warning quickly sparked backlash against X, where critics accused the longtime gold defender of repeating a decade-old bearish scenario.
One user claimed that investors who followed his past silver calls were “stuck in there for 20 years”, referring to the metal’s prolonged stagnation following previous highs. Others pointed to Schiff’s habit of urging investors to sell Bitcoin at much lower levels, noting that he had issued similar warnings since the asset was trading near $100.
A separate response argued that Bitcoin’s “intrinsic value” lies in its censorship-resistant settlement network, global liquidity, and lack of gatekeepers, describing its volatility not as a flaw but as the market process of evaluating a new financial system in real time.
The exchange shows the deep-seated divide between Schiff and Bitcoin supporters, with critics describing his latest $20,000 prediction as a continuation of long-standing skepticism that has so far failed to derail the cryptocurrency’s broader upward trajectory.
Still, Schiff’s comments highlight a lingering divide within the investment community: whether Bitcoin’s growing institutional footprint makes it more resilient or more vulnerable in a severe recession.
