Key Takeaways
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Peter Schiff said he could eventually predict a Bitcoin decline to $1,000.
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The comments came after Citigroup cut its 12-month Bitcoin price target to $82,000 from $112,000.
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Schiff argued a sharp Bitcoin selloff could force Strategy to sell more of its holdings.
Gold advocate Peter Schiff warned on Tuesday that he would eventually predict Bitcoin’s price declining to $1,000.
It comes as Citigroup separately lowered its 12-month price forecast for the crypto amid weakening investor demand and persistent ETF outflows.
Bitcoin’s price was trading around $58,900 on Tuesday, extending recent losses after falling to its lowest level since September 2024.
Schiff Warns of Further Bitcoin Price Fall
In a post on X, Schiff said Bitcoin’s support near $58,000 was unlikely to hold.
Schiff argued that a break below that level could send the crypto down to $50,000, then to $20,000.
He also said such a decline could force Strategy, the largest corporate holder of Bitcoin, to sell additional holdings to preserve its US dollar reserves.
“I wouldn’t pay $20,000 for just one Bitcoin,” Schiff said.
In a separate post, Schiff questioned why investors viewed a return to $20,000 as improbable, noting that Bitcoin traded below that level less than four years ago.
He argued that assets can revisit multi-year lows and said Bitcoin’s historic volatility makes it plausible.
In a follow up post in response to someone asking why he doesn’t make a call as low as $1,000, Schiff wrote:
“I will go there eventually. I’m just pointing out a high number that most Bitcoiners still think is impossible.”
Citi Lowers Bitcoin Price Forecast
Schiff’s latest comments came after Citigroup cut its 12-month forecasts for both Bitcoin and Ether, citing weaker investor appetite and slower-than-expected progress on U.S. digital asset legislation.
Citi reduced its 12-month Bitcoin target to $82,000 from $112,000, Reuters reported.
Meanwhile, it lowered its Ethereum forecast to $2,240 from $3,175.
According to the report, Citi also outlined a bearish scenario in which Bitcoin falls to around $53,000 over the next year.
At the time of reporting, Bitcoin was trading at around $58,900 after sliding to its weakest level since September 2024.
The crypto has lost more than half its value since reaching $126,200 in October last year.
Schiff Has Repeatedly Warned About Strategy
The latest warning follows similar comments Schiff has made in recent days.
In June, Schiff argued that a sharp decline in Bitcoin could place significant pressure on Strategy’s balance sheet.
Schiff said that falling Bitcoin prices could force the company to sell part of its holdings to meet financial obligations.
He has also argued that if Strategy were ever forced to liquidate Bitcoin, the resulting supply could weigh heavily on prices.
Schiff has made at least 23 public statements declaring Bitcoin “dead” since 2011 — more than any other tracked critic.
Strategy Authorizes Potential $1.25 Billion Bitcoin Sales
Schiff’s latest warnings come just days after Strategy unveiled a plan that gives it the option to sell up to $1.25 billion Bitcoin.
According to the company, proceeds could be used to build its US dollar reserve, fund preferred stock dividend and interest payments, and repurchase preferred securities.
Strategy emphasized that the authorization does not require it to sell Bitcoin and said any sales would depend on liquidity needs.
“Strategy remains committed to Bitcoin as its primary treasury reserve asset,” Executive Chairman Michael Saylor said.
He added that the framework is would strengthen the company’s credit profile while providing greater flexibility.
Ran Neuner Says Plan Eases Investor Concerns
Opposite to Schiff’s outlook, Crypto Banter founder Ran Neuner said the announcement addresses one of the biggest concerns weighing on investor sentiment around Strategy.
Neuner said the capital raise provides Strategy with sufficient liquidity to meet its dividend commitments for more than 17 months.
This, he said, allows the company to avoid making near-term financing decisions as it waits for more favorable market conditions.
“This just shows you that a lot of the Bitcoin price being suppressed is people worried about Saylor and Saylor’s position,” he said.
“The markets basically… breathed a sigh of relief.”
Neuner added that the market had been concerned that Strategy could eventually be forced to sell Bitcoin if its financial position deteriorated.
Could Bitcoin Really Fall to $1,000?
A decline to $1,000 would represent a fall of more than 98% from Bitcoin’s current price near $58,900 and more than 99% below its all-time high of roughly $126,200.
While Bitcoin has experienced several drawdowns of more than 70% during previous bear markets, a move to $1,000 would mark by far the largest collapse in the cryptocurrency’s history.
A fall to $1,000 would likely require an unprecedented combination of events at the same time.
These would include:
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Widespread regulatory bans
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A collapse in institutional demand
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Mass liquidations by major holders
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Severe breakdown in confidence
Even Schiff did not predict an imminent move to that level, instead saying he would “go there eventually.”
Despite major price drops, most institutional forecasts remain well above that level.
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The post Bitcoin Price Could Fall To $1,000, Claims Peter Schiff, as Citi Cuts Its 12-Month BTC Prediction appeared first on ccn.com.
