Economist Peter Schiff warns Bitcoin faces crash to $20,000

Bitcoin is again at the center of a sharp bearish forecast from outspoken critic Peter Schiff. As price consolidates near the mid-$60,000 range, Schiff has argued that bears are making ready to test the important $50,000 long-term support level. 

If that ground gives way, he believes the momentum ought to accelerate, doubtlessly dragging Bitcoin towards the $20,000 place, Schiff said in an X post on February 19. 

Indeed, after the sharp drop below $70,000, Bitcoin has entered a consolidation phase, failing to make a decisive move. At press time, Bitcoin was trading at $68,210, up about 2% over the past 24 hours.

Bitcoin’s $50K support in focus

Notably, Bitcoin’s $50,000 zone has long been viewed as a structural support level during broader corrections. 

In this case, Schiff contends that when this stage is breached,  especially with the price already sitting under the $55,000 found out price, renewed selling pressure could be accentuated. According to his outlook, loss of that psychological and technical support may additionally cause cascading liquidations and weaken investor confidence.

Earlier this month, Schiff floated an excellent steeper downside scenario, suggesting initial support could emerge close to $10,000.

 Within days, however, he revised that projection upward to $20,000. Despite the adjustment, his broader thesis remains firmly bearish.

Schiff’s Bitcoin criticism 

Overall, Schiff, also a major gold bug, has criticized Bitcoin since 2013, whilst the asset traded below $500. Over the years, he has consistently framed it as speculative extra instead of a sustainable store of value, frequently contrasting it with gold. 

Even after Bitcoin delivered exponential profits over multiple cycles, Schiff has maintained his skeptical stance.

In his latest remarks, he claimed many investors were “dumb enough” to buy Bitcoin, while others eventually entered the market due to fear of missing out. Supporters of the asset argue that such rhetoric overlooks its long-term growth trajectory and resilience through repeated drawdowns.

Market history and bearish Bitcoin projections

Bitcoin has experienced several corrections exceeding 50% throughout its history, only to recover and eventually establish new highs. Major support levels often attract liquidity during downturns, though decisive breaks can spark volatility spikes.

Schiff’s predictions regularly stir debate across financial circles. While his bearish outlook gains attention during corrections, Bitcoin’s historical pattern of recovery continues to challenge persistent collapse narratives.

Featured image via Shutterstock