Economist Peter Schiff predicts digital assets could tumble if the NASDAQ continues its decline. He argues their strong correlation with tech stocks makes them vulnerable to further losses.
“The NASDAQ is down 12%,”
Schiff noted on X.
“If it enters a bear market, digital assets could drop sharply, possibly to $65K.”
Currently trading near $83,480, the leading asset has already fallen 14.5% this month, but Schiff believes worse may come.
Past Market Crashes Offer Warnings
Schiff compares the situation to previous market downturns. The NASDAQ plunged 80% during the Dot-com bust, 55% in the 2008 crisis, and 30% in 2020. Even a 40% drop today, he warns, could send digital assets plummeting to $20K—or lower.
Gold’s Safe-Haven Appeal Grows
As tech markets struggle, gold has risen 13% since December 2023. Schiff expects further gains if equities and the U.S. dollar weaken, with gold potentially surpassing $3,800 per ounce.
Store-of-Value Narrative at Risk?
Schiff argues that a severe crash could shake institutional confidence in digital assets as a store of value.
“If prices plunge, governments and investors may rethink their holdings,”
he cautioned.
With uncertainty looming, markets are watching to see if Schiff’s bearish outlook will materialize.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
