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Economist and longtime Bitcoin critic Peter Schiff has warned that Bitcoin could collapse to $20,000 if the asset loses key support near $50,000.
His comments come amid escalating geopolitical tensions following reports that the US military was preparing strike options against Iran.
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Peter Schiff’s anti-Bitcoin outlook is stronger than ever
Schiff argued A drop below $50,000 now seems likely and could lead to a much deeper decline. He noted that Bitcoin may repeat historical collapse patterns seen in previous cycles, even with increased institutional adoption and broader mainstream interest.
His warning comes at the same time Bitcoin is trading near $66,000a sharp decline from its highest levels in the last session.
Schiff has been one of Bitcoin’s most consistent skeptics For over a decade. He repeatedly described Bitcoin as a speculative bubble and argued that it lacked intrinsic value.
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during Previous bull marketsexpected major collapses, while continuing to promote gold as a superior store of value.
However, Bitcoin has repeatedly recovered from severe corrections and reached new highs over time.
His latest warning comes at a fragile time for cryptocurrency markets. Global risk sentiment has moderated Fears of possible US military action against Iran.
Historically, Bitcoin often declines in the first phase of geopolitical shocks as investors reduce exposure to volatile assets.
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The data on the chain supports the view that short-term weakness is still possible. The SOPR indicator for short-term holders is currently below 1, indicating that new buyers are selling at a loss.
This reflects continued fear and capitulation among weaker investors.
Meanwhile, another key metric tells a different story. Bitcoin’s short-term Sharpe ratio has fallen to extremely negative levels.
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This indicates that Bitcoin has already delivered unusually weak returns Compared to fluctuations.
In previous sessions, these conditions often appeared near a local bottom rather than the beginning of long collapses.
This creates a contrasting look. While geopolitical pressures and weak sentiment may push Bitcoin lower in the short term, it appears that most of the speculative excess has already been cleaned up.
Schiff’s prediction reflects the growing uncertainty, but the data on the chain suggests that the market may be closer to a reset phase than the beginning of a complete collapse.
