Bearish Analyst Peter Schiff Makes a Bold Statement Following Bitcoin’s Decline
Economist Peter Schiff, known for his anti-Bitcoin stance, commented on the cryptocurrency market downturn. Bitcoin dropped below $100,000 for the first time since June, and Schiff emphasized Ethereum's significant decline, predicting it could fall below $3,000, erasing its 2025 gains. He reiterated his belief that Bitcoin cannot serve as a long-term store of value and noted its negative correlation with gold, claiming Bitcoin has lost one-third of its value in gold terms since its peak. Schiff suggested gold might see a strong rally while crypto faces a liquidity squeeze amid a U.S. government shutdown.
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Introduction: Peter Schiff's Return
Following the sharp sell-off in the cryptocurrency market, economist and gold advocate Peter Schiff, long known for his anti-Bitcoin views, has returned to the scene. Schiff highlighted the downturn in the crypto market, focusing on Bitcoin and Ethereum.
Bitcoin's Decline and Schiff's Commentary
Schiff stated that while Bitcoin's decline below $100,000 was anticipated, the real collapse occurred on Ethereum. He remarked:
'Bitcoin finally broke below $100,000. But the real drop is happening in ETH. The price of Ethereum is poised to fall below $3,000, representing a nearly 40% drop from its record high hit in August. ETH has erased all of its 2025 gains. Bitcoin will soon do the same.'
Schiff's observations suggest a bearish outlook for both flagship cryptocurrencies.
General Crypto Market Crash and the Bubble Burst Theory
Today's general crash in the crypto market has reignited Schiff's long-held “bubble burst” theory. According to Schiff, this decline indicates once more that Bitcoin cannot be a long-term store of value.
Bitcoin, which fell below $100,000 for the first time since June 23, has faced heavy selling pressure over the last 24 hours. This is attributed to both a market-wide liquidity squeeze and the record-long US government shutdown, further exacerbating the downturn.
Bitcoin vs. Gold Dynamics
Schiff emphasized Bitcoin's declining value in terms of gold, stating:
'Bitcoin has lost a third of its value in gold terms since its peak last month. Two-thirds remain.'
He added that there is a negative correlation between gold and Bitcoin, suggesting that while Bitcoin is experiencing a sharp decline, gold may be preparing for a strong rally.