Bitcoin has seen a sharp reversal from its peak, reigniting warnings from long-time cryptocurrency critic Peter Schiff, who has cautioned that the digital asset could face significantly deeper losses. Bitcoin is currently trading about $58,000 lower, or more than 46%, from its all-time high of $126,198.07, which was recorded on October 7, 2025.
Amid the steep correction, Schiff issued a stark warning, suggesting that the worst may still lie ahead for the world’s largest cryptocurrency.
“If Bitcoin breaks $50K, which looks likely, it seems highly likely it will at least test $20K. That would be an 84% drop from its ATH. I know Bitcoin has done that before, but never with so much hype, leverage, institutional ownership, and market cap at stake. Sell Bitcoin now!,” the economist said in a post on X.
Bitcoin’s weakest start to a year on record
Bitcoin’s recent price action has been particularly bruising in early 2026. The asset is down 23% year to date, having declined 10% in January and a further 15% in February. The weakness follows a 17% decline in 2025, adding to growing concerns over sustained downside pressure.
Despite the broader weakness, Bitcoin did see a short-lived rebound, climbing above $68,000 during the morning session after a choppy trading week. The move was supported by rising geopolitical tensions between the United States and Iran, which briefly boosted haven demand across global markets.
U.S. President Donald Trump said on Thursday that he would allow 10 to 15 days for talks on a potential nuclear deal with Iran, even as American forces were reportedly building up in the region. That combination of diplomatic uncertainty and military positioning contributed to short-term support for risk assets, including cryptocurrencies.
Schiff doubles down on dollar collapse warning
Schiff has remained consistent in his broader macro view, tying Bitcoin’s volatility to what he sees as deeper vulnerabilities in the global financial system. In a recent interview with FOX Business, he delivered an even more dramatic warning about the future of the U.S. dollar.
“The dollar is going to collapse. The dollar is going to be replaced by gold. We are headed for an economic crisis that will make the 2008 financial crisis seem like a Sunday school picnic,” Schiff said.
He went on to argue that countries and central banks are steadily reducing their dependence on the dollar and U.S. Treasuries, while increasing their gold reserves to support domestic currencies. According to Schiff, this shift points to a deeper structural change underway in the global monetary system.
Schiff further claimed that the world is “pulling the rug out from under the US,” adding that the next financial crisis would differ sharply from the one seen in 2008. In his view, the coming shock would be concentrated within the United States, rather than unfolding as a globally synchronised crisis.
Who is Peter Schiff?
Peter Schiff is an American economist, fund manager, and the founder of Euro Pacific Asset Management. He is widely known for his criticism of central banking systems and fiat currencies, and for advocating gold and precious metals as protection against inflation and monetary instability. Schiff rose to prominence for warning about the U.S. housing bubble and the 2008 financial crisis well before it unfolded, a record that continues to underpin his credibility among supporters and critics alike.
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