Long-time Bitcoin critic and gold advocate Peter Schiff has renewed his bearish stance, warning that Bitcoin could plummet below $20,000 once it breaks the $50,000 level. His comments came as BTC fell below $67,000, down over 4% in 24 hours and 16% over the past 30 days.
Schiff highlighted that complacency remains high in the market, arguing that too many investors are still holding on, preventing a true bottom. "When Bitcoin breaks $50K, it should be a quick fall below $20K," he posted on X, predicting the drop would be severe enough to shake out even long-term holders.
He also zeroed in on Strategy's preferred stock (STRC), warning of a potential "death spiral" if investor confidence falters. With STRC trading below $96 and its current yield around 12%, Schiff argued that a forced coupon hike could accelerate selling pressure. The comments follow Strategy's recent sale of just 32 BTC—a fraction of its over 843,000 BTC holdings—to fund dividends, a move Schiff sees as a sign of fragility.
Beyond price predictions, Schiff trained his fire on the Strategic Bitcoin Reserve (SBR), cautioning that as Bitcoin's price drops, pressure may mount from Trump-linked donors and industry players to use the reserve as a bailout mechanism. He urged lawmakers from both parties to resist such efforts, insisting that public funds should not backstop private crypto losses.
Not everyone shares Schiff's apocalyptic view. Crypto commentator Alex Marzell quipped that a move to $20K would merely test his spare cash, while Bitget CEO Gracey Chen said she would look to buy near $50,000. However, she also flagged short-term risks including CPI data, potential rate hikes, whale selling from entities like Strategy and Mt. Gox creditors, and liquidity drains from a wave of AI-sector IPOs.
Data from CryptoQuant adds weight to the bearish narrative: overall Bitcoin demand is contracting at a pace of 232,000 BTC per month, according to head of research Julio Moreno. He attributed the correction primarily to weakening demand, not broader macroeconomic headwinds, echoing a recent Bitfinex report describing a "slow bleed" phase driven by distribution and fading investor conviction.
