Peter Schiff, president of Euro Pacific Capital and a prominent crypto skeptic, has warned that Bitcoin has not yet reached its bottom and could eventually plummet below the $20,000 mark. As the leading cryptocurrency dipped under $62,000 on the morning of Thursday, June 4, Schiff argued that the ensuing market turmoil will intensify pressure on Donald Trump’s administration from industry advocates pushing for a taxpayer-funded national Bitcoin reserve, prompting the economist to urge Republicans to unite with Democrats in blocking such initiatives.

Highlighting the asset's severe underperformance, Schiff pointed out that since November 2021 – when Bitcoin first surpassed $69,000 – traditional investments have vastly outpaced it, with the NASDAQ index growing by 73%, gold appreciating by 138%, and silver surging by 218%. He asserted that Bitcoin investors have missed out on both high-risk and traditional safe-haven opportunities, predicting that once the price breaches the $50,000 threshold, it will rapidly accelerate downward past $20,000, a move he believes will ultimately break the conviction of long-term holders and force widespread capitulation.

The prominent economist also highlighted the severe financial strain this downturn places on Strategy, the largest corporate holder of Bitcoin, noting that its preferred STRC shares have fallen to $94.85 with dividend yields climbing to 12.12%, which could force the company to sell more Bitcoin to cover debt obligations. Schiff cautioned that such massive investor losses could trigger stricter US crypto regulations, while separately, CryptoQuant CEO Ki Young Ju offered a timeline for the bear market's end, suggesting it typically concludes 18 months after a profit-taking cascade begins to depress the profit and loss (PnL) ratio.

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The material is prepared solely for informational purposes and does not constitute a financial advice or recommendation.