Debate over cryptocurrencies has intensified after a new Peter Schiff forecast urged investors to sell bitcoin amid a potential breakdown in price support.
Peter Schiff calls for investors to sell now
Veteran gold advocate Peter Schiff has again targeted Bitcoin, arguing that a decisive move below $50,000 could open the door to a brutal selloff. In a post on X, he warned that, if support fails, the market could slide toward $20,000, which would represent an 84% decline from the cryptocurrency’s all-time high.
Schiff told followers that “if Bitcoin breaks $50K, which looks likely, it seems highly likely it will at least test $20K,” effectively reviving his long-standing bearish stance. Moreover, he framed the current setup as particularly dangerous, insisting that the downside risk is greater than in previous cycles.
He added that he does “know Bitcoin has done that before,” referring to past severe drawdowns after euphoric rallies. However, he argued that this time is different due to what he sees as extreme leverage, surging institutional ownership, and an enlarged overall market cap. On that basis, his message to followers was emphatic: “Sell Bitcoin now.”
Why Schiff sees higher risk in the current cycle
Schiff has for years claimed that Bitcoin price cycles resemble classic speculative bubbles, driven more by liquidity and enthusiasm than by sustainable fundamentals. His latest comments arrive at a moment of renewed volatility, as traders monitor key technical levels and attempt to gauge whether the uptrend from 2021 can hold.
An 84% retracement into the $20,000 area would echo previous bear markets. Bitcoin has already experienced drawdowns of more than 70% following major peaks, including the slump after its 2017 top and the crash that followed its 2021 record high. That said, the underlying market structure has changed markedly since those earlier cycles.
Today, spot exchange-traded funds, corporate treasury allocations and institutional asset managers all hold meaningful positions in BTC. Moreover, critics of Schiff’s thesis argue that this broader institutional footprint could either deepen future selloffs or help stabilize liquidity during stress. This uncertainty sits at the core of the ongoing bitcoin institutional risk analysis now unfolding across trading desks.
Backlash on X to the latest crash scenario
Schiff’s renewed call to sell bitcoin quickly faced resistance on X, where users highlighted his long record of pessimistic forecasts. One critic claimed that investors who followed his earlier recommendations on silver had been “stuck in it for 20 years,” alluding to the metal’s prolonged stagnation after past surges. The remark was used to challenge the reliability of his market-timing track record.
Others argued that Schiff has been urging investors to exit Bitcoin since it traded near $100, pointing to archived posts to underline that his bearish narrative has persisted through multiple bull markets. However, supporters of Schiff countered that repeated rallies do not eliminate the possibility of a severe reversal from current levels.
A separate response on X pushed back against the focus on price alone, asserting that Bitcoin’s “intrinsic value” stems from its censorship-resistant settlement network and global liquidity. According to this view, volatility is not a fatal weakness but rather evidence of markets continually reassessing a new, neutral financial infrastructure in real time.
Competing narratives around bitcoin’s long-term value
The exchange between Schiff and critics illustrates a deep ideological divide that has evolved since Bitcoin’s early years. On one side stand skeptics who see repeated manias, each leaving latecomers exposed when liquidity dries up. On the other are advocates who argue that a permissionless, borderless asset with predictable issuance will, over time, justify its market capitalization.
Moreover, many long-term holders point out that Bitcoin has repeatedly recovered from large percentage drawdowns, eventually setting new all-time highs after each major bear market. They argue that while a move to $20,000 would be painful, it would not necessarily invalidate the broader adoption trend or the core thesis of a scarce digital asset.
However, Schiff’s warning that investors should sell bitcoin before a potential break of key support underscores a core concern among traditional analysts. They fear that the combination of leverage, derivatives, and institutional positioning could accelerate any future downturn, turning an ordinary correction into a deeper liquidity event.
What is at stake if bitcoin breaks $50,000
Market participants are now watching the $50,000 level as a key technical zone that could influence sentiment. A sustained break below that threshold would test the conviction of both retail entrants and institutions that built positions after 2021. Moreover, it could trigger forced liquidations among leveraged traders, intensifying short-term volatility.
For Schiff, such a breakdown would validate his long-running claim that Bitcoin functions more like a speculative asset than a durable store of value. His critics, however, see these episodes as recurring chapters in a broader price discovery process that has, so far, favored patient holders over short-term timers.
In the end, Schiff’s latest forecast and the online backlash highlight a persistent split in the investment community: whether growing institutional participation makes Bitcoin more robust in a crisis or more fragile. As traders debate each new bitcoin crash price prediction, they must also decide how much weight to give to a decade of warnings that have yet to halt the asset’s overall upward trajectory.
For now, the clash between Schiff’s bearish outlook and Bitcoin advocates’ long-term conviction remains unresolved, leaving investors to weigh leverage, institutional flows, and historic drawdowns as they navigate the next major move in the digital asset market.