Popular Bitcoin critic Peter Schiff recently predicted a potential slump in Bitcoin’s price to $20,000 on April 14. He also warned that Microstrategy, the largest corporate holder of Bitcoin, could potentially lose an estimated $2.7 billion if the price crashes. Schiff disclosed his Bitcoin price prediction in a post while emphasizing the importance of the asset’s $60,000 support level. He cautioned that a further slump below this level could trigger a sharp decline that might lead to a major drop to $20,000, impacting MicroStrategy’s Bitcoin investments.
MicroStrategy currently holds approximately 1% of the total supply of Bitcoin, which equates to around 214,000 BTC acquired at an average price of $34,000. A drop in price to $20,000 would result in an estimated “unrealized loss” of $2.7 billion for the company. While the company has experienced losses during bearish markets, CEO Michael Saylor remains optimistic about Bitcoin, often encouraging investors to maintain a long-term perspective. Saylor believes that chaos in traditional markets tends to benefit Bitcoin in the long run.
This is not the first time Schiff has targeted Microstrategy amid uncertainties in the crypto market. In March, he criticized the firm’s acquisition of $623 million worth of BTC, warning of potential losses if the price fell to $20,000. However, Schiff’s prediction of a significant price drop to $20,000 seems unlikely based on current market trends, technical analysis, and historical doomsday projections for Bitcoin’s price. While there has been a dip towards the $60,000 level, there is no strong basis for a major drop to $20,000.
According to CoinCodex Bitcoin price prediction analysis, Bitcoin’s 50-day and 200-day Exponential Moving Averages (EMAs) of $63,128 and $47,900 can provide support levels. A sustained level above these EMAs could negate Schiff’s “triple top” forecast scenario. A recovery above $60,000 could strengthen bullish sentiments around Bitcoin, while a breakthrough above recent highs near $67,500 would signal market recovery. Despite Schiff’s bearish outlook, the market’s fundamentals and technical indicators suggest a different trajectory for Bitcoin’s price in the near future.
Schiff has also projected continuous falls in Bitcoin’s price before his recent $20,000 doomsday prediction. He previously drew a parallel between Bitcoin’s 2021 bullish run and its subsequent price decline, predicting a much bigger drop based on historical trends. However, the asset briefly surpassed the $71,000 price mark on April 4, contradicting Schiff’s expectations. Schiff made his latest projection amid geopolitical tensions and renewed hostilities in the Israel-Iran conflict, which have impacted the price of BTC and major markets.
While the Bitcoin market faced challenges during the Russia-Ukraine war in February 2022, leading to a drop in trading volume, it rebounded strongly after the instability. Schiff’s Bitcoin price prediction has stirred reactions from the crypto community, with some experts questioning the validity and relevance of his analysis. Despite differing opinions, the market dynamics and external factors continue to influence Bitcoin’s price movements, making it a subject of speculation and debate among investors and analysts.
