Veteran economist and gold advocate Peter Schiff has sparked a heated debate by outlining a bearish scenario where Bitcoin's price could plummet to $10,000 by the end of 2026, implying a staggering 92% decline from recent highs above $70,000. Schiff's comments, made as Bitcoin traded around $71,400, criticized the bullish accumulation strategy of Michael Saylor's MicroStrategy.
Schiff argued that Bitcoin has underperformed traditional assets like stocks, gold, and silver over a five-year period and that its upside is currently limited while downside risk remains significant. He specifically mocked MicroStrategy's ongoing Bitcoin purchases, suggesting that even if Bitcoin were the best-performing asset over a decade, a 92% drop would leave most long-term holders at a loss. "Probably Bitcoin," Schiff replied when asked which asset would hit $10,000 first, further antagonizing Bitcoin proponents.
His warnings are amplified by a tense macro environment. Analysis from XWIN Research Japan cited the potential for a severe global liquidity collapse in an extreme scenario, such as a prolonged closure of the Hormuz Strait or a full-scale conflict, which could push Bitcoin down 80% toward the $10,000 level. Bloomberg Intelligence strategist Mike McGlone also noted that $10,000 remains a historically significant support level since Bitcoin futures launched in 2017.
Despite the bearish forecasts, MicroStrategy remains steadfast. The company recently purchased an additional 4,871 BTC for approximately $329.9 million, bringing its total holdings to 766,970 BTC with an average purchase price of $75,644 per Bitcoin. Other analysts, like Michaël van de Poppe, maintain a more optimistic near-term outlook, suggesting a potential rebound toward $86,000.
