Bitcoin (CRYPTO: BTC) could crash well below $10,000, Peter Schiff warns, telling investors to "get the hell out" now rather than wait for a bigger collapse later.
Bitcoin's Two-Year Losing Streak Breaks an 18-Year Pattern
Schiff told Bitcoin Magazine Thursday that Bitcoin has never posted two consecutive down years in its 18-year history, a streak now set to break after last year's 6.5% decline and this year's roughly 18.5% drop so far.
He argued that matters because the past two years brought Bitcoin arguably the best fundamental backdrop it's ever had: a Bitcoin-friendly president, a Bitcoin strategic reserve, and a Trump administration that reoriented its family business toward crypto. Yet prices still fell.
"You got to ask yourself, why did it go down? Who was selling into all that good news?" Schiff said, calling current holders "the bag holder" left exposed once that hype fades.
Moreover, Bitcoin lacks the fundamentals that support assets like gold or the S&P 500 (NYSE:SPY), since it generates no income, dividends or rent.
Most Bitcoin now sits with ETFs and treasury companies like Strategy rather than long-term believers, he noted, meaning the hot money that drove prices up since 2022 could exit just as fast once sentiment turns.
"The price is going to head well below 10,000," he predicted, forecasting a faster decline than the climb that preceded it.
A 2028 Democratic Win Could Trigger Strategic Reserve Selling
Schiff expects Democrats to win the presidency in 2028 and sell off whatever Bitcoin remains in the government's strategic reserve, pressuring prices further.
Markets had already priced in additional government buying and a potential "arms race" among nations to acquire Bitcoin, he explained, speculation he credits with pushing Bitcoin to $126,000 in 2024, hype that has since unwound.
Why Schiff Says the Fed's Rate Path Won't Fix Inflation
The Fed's expected December rate hike, priced at 99% odds by CME FedWatch, won't meaningfully slow inflation, in Schiff's view, since even a half-point increase trails inflation's current pace, meaning real interest rates keep falling.
Money supply is still expanding at roughly 6% annualized, three times the Fed's 2% target, which is why he calls current policy "accommodative" rather than genuinely restrictive.
Gold's pullback after this week's hot CPI print reflects traders misreading the data, according to Schiff, who insisted rising inflation ultimately remains bullish for gold even when hawkish Fed rhetoric causes short-term dips.
On Nvidia (NASDAQ:NVDA) CEO Jensen Huang's resignation, Schiff dismissed the market reaction as overblown, arguing the AI buildout is bigger than one executive even if the broader trade eventually corrects.
