The crypto currency market took place in a turbulent days, the famous economist Peter Schiff’ten a attention to a Bitcoin warning came. According to Schiff, a 40 %decrease in the NASDAQ index may rise to the price of BTC to $ 20,000. So, how realistic is this guess? What awaits Bitcoin investors? As Kriptokoin.com, we convey the details…

Bitcoin and Nasdaq: Critical Connection

The crypto market has long been synchronized with traditional financial markets. It is known that there is a strong correlation between the NASDAQ index and Bitcoin. When we look at historical data, every big decline in Nasdaq seems to have a harder depreciation in Bitcoin.

NASDAQ has currently experienced a 12 %correction, and Bitcoin fell to $ 65,000 with a 24 %depreciation in this process. So, what happens if Nasdaq continues to decline?

• If NASDAQ loses 20 %, BTC may decrease to $ 55,000.
• If NASDAQ decreases 40 %, the probability of Bitcoin will be on $ 20,000.

Peter Schiff emphasizes that Nasdaq has experienced much harder decreases throughout history. Dot-com balloon, 2008 global financial crisis and COVID-19 collapse during the collapse of 30 %to 80 %of Nasdaq losses occurred. If such a scenario is repeated, hard days may be waiting for Bitcoin investors.

Gold is a safe port? What is Bitcoin’s weak point?

Schiff argues that the claim of being a value -storage tool compared to Bitcoin should be questioned. According to him, the fact that Bitcoin moves in parallel with Nasdaq weakens the claim of “digital gold” of crypto currency.

On the other hand, Gold stands out as an entity recently refuge in investors. Since the date Nasdaq reached the summit on December 16, 2023, the value of gold rose by 13 %. Schiff predicts that if Nasdaq drops 40 %, gold can exceed $ 3,800.

If the BTC falls to $ 20,000, it will have experienced a depreciation of more than 85 %compared to gold. This can shake Bitcoin’s status of being a long -term investment tool.

Can Bitcoin be removed from the reserves? What will corporate investors do?

In Bitcoin, a major loss of value may force governments and corporate investors to stop keeping BTC on their reserves. Schiff thinks it will be inevitable that large companies such as Microstrategy will sell Bitcoin assets to avoid financial problems.

So what do these sales mean?

• Large -scale Bitcoin sales can withdraw the price even further.
• Corporate investors may move away from BTC.
• The process of adopting governments as a reserve money may be interrupted.

All these factors show that Bitcoin is facing a greater risk of fall.

Critical threshold for Bitcoin!

Bitcoin is currently trading at $ 83,742 and has a small decrease of 0.66 %in the last 24 hours. However, major developments are expected in the market, such as US inflation data and Fed’s interest decisions.

Investors should be careful in the face of such fluctuations and analyze the direction of the market correctly. If Nasdaq enters a hard down trend, Bitcoin is likely to experience greater losses in the coming weeks.

Finally, it is not known whether Peter Schiff’s predictions are realized, but Bitcoin investors must already be prepared against possible risks!