Bitcoin Price at Risk of $65K Drop! Peter Schiff Questions Hedge Status
Vignesh S G17 Mar 20254 min read
Since February 20, the Nasdaq Composite Index has dropped 11.34%, while the Nasdaq 100 has fallen 10.94%. Bitcoin, often called “digital gold,” has declined even more – down 13.52%, indicating that the BTC market is currently following the trend of the US stock market.
Gold advocate Peter Schiff doesn’t hold back – he argues that Bitcoin has failed as a store of value, especially in times of crisis. He even warns that a deeper Nasdaq crash could send BTC spiraling even lower.
So, is Bitcoin really the future of safe-haven assets, or is gold still king? Let’s dive in.
Nasdaq’s Sharp Drop Raises Concerns
At the start of 2025, the Nasdaq Composite Index was at $19,401. From January 1 to February 27, it moved between $20,087.23 and $18,902.75. However, on February 27, the market fell sharply, losing 3.46% in a single day and dropping below this range. Since February 20, the index has lost over 11.34%.
Bitcoin Mirrors the Stock Market’s Decline
Bitcoin began the year at $93,587.07, staying within a range of $92,540.01 to $106,151.77 until February 24. On January 20, buyers briefly pushed BTC to $109,568.48, but by the day’s close, it had dropped to $102,294.18. Then, on February 24, a major sell-off caused a 4.97% drop in a single day, breaking Bitcoin’s previous range. Since February 20, BTC has fallen 13.52%, showing it is moving in sync with the stock market rather than acting as a hedge.
Peter Schiff compares the current market conditions to past financial crashes, including the Dot-Com Bubble, the 2008 crisis, and the 2020 COVID-19 crash. He predicts that if the Nasdaq drops 20%, Bitcoin could fall to $65,000. If the Nasdaq plunges 40%, he warns BTC could crash to $20,000 or even lower.
Currently, Bitcoin is trading at $83,559.98—31.39% below its all-time high.
Gold Rises as Bitcoin Falls
While Bitcoin and stocks are struggling, gold prices have been rising. Schiff points out that while the Nasdaq has declined, gold has gained at least 13%, reinforcing its reputation as a safe-haven asset.
At the start of 2025, gold was priced at $2,624.65. Since then, it has climbed 13.86%, with a 12.46% increase between January 1 and February 24 alone. Even during the market downturn since February 20, gold has risen 1.83%.
Currently, gold stands at $2,989.38, and Schiff believes that if stock prices keep falling, gold could surge past $3,800.
Bitcoin’s Credibility at Risk?
Exposing how Bitcoin has failed to rise to the status of gold as a reliable store of value and a strong hedge against economic uncertainties, Schiff expresses concerns about the feasibility of the Bitcoin Strategic Reserve proposal.
He states that if BTC crashes during economic uncertainties, governments may have no reason to hold it in their reserves.
He warns that Bitcoin ETF investors could panic and sell their holdings. He even points out that If BTC drops sharply, even Strategy may need to sell its holdings.
Strategy is the publicly traded company that holds the largest number of BTC tokens. It owns no fewer than 499,096 BTC tokens, valued at $41,682,990,650.
The company has been a dedicated advocate of corporate crypto adoption. In November 2024, it even recommended tech giants like Microsoft adopt its aggressive crypto-buying strategy. Importantly, the short-term success achieved by this public company has encouraged many other companies to reverse their stance on crypto adoption.
It seems like the age-old debate between digital and physical assets takes a new turn.
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FAQs
- As per Coinpedia’s BTC price prediction, 1 BTC could peak at $169,046 this year if the bullish sentiment sustains.
