- Bitcoin has dropped over 46% from its record high of $126,198.07 reached in October 2025
- Peter Schiff warns Bitcoin could test $20,000, an 84% drop from its all-time high
- Bitcoin is down 23% year-to-date after declines in January and February 2026
Bitcoin has sharply reversed from its record high, triggering renewed warnings from long-time cryptocurrency critic Peter Schiff, who says the digital asset could face significantly deeper losses.
The world's largest cryptocurrency is currently trading about $58,000 lower — down more than 46% — from its all-time high of $126,198.07, recorded on Oct. 7, 2025.
Amid the steep correction, Schiff cautioned that the downside may not be over.
“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 wrote in a post on X.
Schiff is an American economist and fund manager, and founder of Euro Pacific Asset Management, known for criticising central banks and fiat currencies while advocating gold as a hedge against inflation.
Worst Start To A Year On Record
Bitcoin's early 2026 performance has added to investor concerns. The cryptocurrency is down 23% year-to-date, after falling 10% in January and a further 15% in February. The weakness follows a 17% decline in 2025, marking a prolonged period of downside pressure.
Despite the broader slump, Bitcoin staged a brief rebound during the week, climbing above $68,000 in morning trade after a volatile stretch. The move coincided with rising geopolitical tensions between the United States and Iran, which briefly lifted haven demand across global markets.
US President Donald Trump said 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. The combination of diplomatic uncertainty and military positioning provided short-term support for risk assets, including cryptocurrencies.
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Schiff Flags Dollar Collapse Risk
Schiff has continued to link Bitcoin's volatility to broader macroeconomic vulnerabilities, particularly in the United States.
In a recent interview with FOX Business, he issued a stark warning about the future of the US 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 argued that countries and central banks are gradually reducing their reliance on the dollar and US Treasuries, while increasing gold reserves to strengthen domestic currencies. According to Schiff, this signals a deeper structural shift in the global monetary system.
Schiff further claimed that the world is “pulling the rug out from under the US,” adding that the next crisis would be concentrated within the US rather than unfolding as a globally synchronised downturn similar to 2008.
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