Bitcoin and Nasdaq Slump While Gold Hits New Highs – Market Trends to Watch
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BTC $ 85,424.62 (2.54%)

US stock indices (Nasdaq) have declined in early 2025, mirroring a drop in Bitcoin's value.
Gold has surged, and Peter Schiff predicts further Nasdaq declines will drive Bitcoin down significantly, while gold rises.
Schiff argues gold is a safer hedge than Bitcoin during market instability, predicting a major Bitcoin crash and gold surge.
Since the start of 2025, the Nasdaq Composite Index has dropped by 8.21 percent, while the Nasdaq 100 Index has fallen by 6.16 percent. Bitcoin hasnโt fared any better, sliding 11.25 percent. Meanwhile, gold is on a steady rise, gaining at least 15.1 percent.
With uncertainty gripping the markets, investors are scrambling for safe-haven assets. Gold advocate Peter Schiff believes this is just the beginning. He warns that if the Nasdaq enters a bear market, Bitcoin could plunge to 65,000 dollarsโor even as low as 20,000 dollars. At the same time, he predicts gold could soar past 3,800 dollars as investors move away from riskier bets.
Letโs take a closer look.
Bitcoin Faces Growing Pressure
Over the past 30 days, Bitcoin has fallen by about 14.3 percent, including a 0.5 percent drop in just the last 24 hours.
Bitcoin skeptic Schiff warns that if the Nasdaq falls 20%, Bitcoin could drop to $65,000. He also points out that a deeper stock market crisis could pull the BTC price to a low of $20,000 or even lower.ย
Schiff sees similarities between todayโs market and past financial downturns.
Could History Repeat Itself?
Schiff compares the current market to previous major crashes in the United States:
- In 2008, during the Global Financial Crisis, the Nasdaq fell 55 percent.
- During the COVID crash of 2020, it dropped by 30 percent.
- When the dot-com bubble burst, the market collapsed by 80 percent.
Based on these past trends, Schiff argues that Bitcoin is at risk of following the stock market downward.
Gold is Gaining Strength
At the start of this year, the gold spot price was $2,623.954. Since then, the gold market has registered a rise of no fewer than 15.1%.
Schiff notes that there is an inverse relationship between the US market and the gold market.
He forecasts that if the Nasdaq drops further, the price of gold could reach as high as $3,800 per ounce.
Bitcoin vs Gold: Which is the Better Hedge?
Schiff remains firm in his belief that Bitcoin is not a reliable hedge against stock market instability. If gold keeps rising while Bitcoin struggles, he believes many investors will turn away from Bitcoin in favor of gold.
He also warns that major institutional investorsโincluding governments, ETFs, and companies like Strategy – may start reducing their Bitcoin holdings if its price continues to drop.
Will Gold Finally Outperform Bitcoin in 2025?
In conclusion, Schiff maintains that Bitcoin is headed for a major crash, while gold is poised to surge. While the crypto market has defied pessimistic predictions before, Schiff remains firm in his belief that gold will outperform Bitcoin in the long run.
Notably, in 2024, the gold market recorded a growth of just 27.21%, while the BTC market registered a rise of at least 121.28%.
History favors gold, but Bitcoin has rewritten the rules before. This showdown isnโt ending anytime soon.
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FAQs
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