This week, prominent Bitcoin critic Peter Schiff warned that once Bitcoin breaks below $50,000, it could quickly crash to under $20,000 — citing what he calls complacency in the market. The warning comes as Bitcoin trades near $67,000, down over 4% in the past 24 hours and more than 16% over the last 30 days. Meanwhile, Strategy, the largest corporate holder of Bitcoin, sold 32 BTC for the first time since 2022, raising about $2.5 million to pay preferred stock dividends.
Schiff's grim forecast
Schiff argued that complacency signals the price isn't near a bottom. A drop below $50,000, he said, would trigger a rapid decline below $20,000. The euro gold advocate added that a Bitcoin crash could either drag down broader risk assets or stay contained to digital assets, pushing investors toward 'value and safety' like gold. He didn't hold back on Strategy's STRC stock either, warning that if investors lose confidence in the company's ability to pay its ~12% yield, the price could drop, forcing a higher coupon and creating what he called a 'death spiral.'
Strategy's unexpected sale
Strategy sold 32 bitcoins — the first sale since 2022 — to cover its preferred stock dividend obligation. The company still holds more than 843,000 BTC, but the move raised eyebrows. Schiff's criticism of STRC's structure echoes concerns some analysts have flagged: that a sudden loss of confidence could force the firm to sell more bitcoin at unfavorable prices.
Market sentiment: waiting for lower prices
Schiff isn't alone in expecting further downside. Crypto commentator Alex Marzell said a drop to $20,000 would only test his available cash — implying he'd buy more. Bitget CEO Gracey Chen told reporters she's waiting to buy near $50,000, citing long-term health due to global money printing. But she flagged short-term risks: CPI pressure, potential rate hikes, selling by whales like Strategy and Mt. Gox, plus AI-sector IPOs draining liquidity.
CryptoQuant head of research Julio Moreno noted that Bitcoin demand is contracting at a monthly pace of 232,000 BTC, and the correction stems from weakening demand, not stock market or macro developments. A Bitfinex report called the current phase a 'slow bleed' driven by distribution and fading investor conviction.
The next big test for Bitcoin is next week's CPI report. If inflation stays hot, the pressure on prices may only intensify.
