As Bitcoin price struggles to pass the $84,000 resistance on the upside, bearish calls for BTC are rising amid severe correction in the US stock market. Popular economist Peter Schiff believes that if Nasdaq enters the bear market correcting 40% from the peak, BTC price can collapse all the way to $20K. NASDAQ Decline and Bitcoin Price Correlation Amid the brutal US stock market correction over the last few weeks, the NASDAQ index is down by 12%. Economist Peter Schiff believes that things could turn brutal for BTC if the correction slips further into a bear market. The Bitcoin price shares a historical correlation with Nasdaq. A 12% NASDAQ decline often equates to a 24% drop in Bitcoin, placing it at approximately $65,000. If the NASDAQ continues to drop by 20%, Bitcoin could align at $55,000. However, Schiff added that Nasdaq has historically seen even greater corrections while slipping into the bear market territory. The economist stated that during the Dot-com bubble, the NASDAQ fell nearly 80%, while it declined 55% during the 2008 financial crisis and 30% during the COVID crash in 2020. Considering an average 55% decline, Schiff believes that even a 40% drop in Nasdaq index could push BTC price lower to $20,000. “A drop of this magnitude would likely accelerate Bitcoin’s collapse to much lower levels,” Schiff stated . However, Peter Schiff is not alone in predicting a Bitcoin price crash to such lower levels. Last week, Bloomberg analyst Mike McGlone predicted a BTC crash to $10K , while Gold has been on a very strong upside rally. For the near term, all eyes will be on the upcoming US Fed decision following the cooling US inflation data for the month of February. Traders are positioning themselves for the same with a strong surge in daily trading volumes. Gold’s Negative Correlation With Nasdaq In contrast to Bitcoin, gold has shown a negative correlation with the NASDAQ. Since the NASDAQ peaked on December 16, 2023, gold has risen 13%, demonstrating an inverse relationship. Economist Peter Schiff stated that if the NASDAQ undergoes a 40% decline, gold could soar past $3,800. These gains could further extend if the bear market leads to a significant decline in the US Dollar, says Schiff. At $3,800 gold and $20,000 Bitcoin, Schiff projected Bitcoin’s value in terms of gold would plunge over 85%, challenging Bitcoin’s narrative as a store of value. Schiff Predicts US Might Give Up On Bitcoin Reserve Plans The economist stated that the divergence in the value of Bitcoin price and Gold could challenge the cryptocurrency’s status as “digital gold”. Thus, Peter Schiff believes that this could further push away the governments or ETF investors to hold Bitcoin in reserves. He added that massive selling pressure would make it “impossible” for companies like MicroStrategy to liquidate enough Bitcoin to avoid financial distress. Over the past weekend, Bitcoin and the broader crypto markets haven’t shown much of a movement. As press time, Bitcoin is trading 0.66% down at $83,742 with its daily trading volume up by 79% to more than $23.21 billion. The post Bitcoin Price Crash to $20K Possible If Nasdaq Enters Bear Market, Says Peter Schiff appeared first on CoinGape .
