Economist Peter Schiff warns Bitcoin could face sharper declines than equities if U.S. stocks extend losses beyond tech.
Bitcoin came under renewed selling pressure Thursday after economist Peter Schiff warned the cryptocurrency could fall further than broader markets in a potential U.S. stock correction. Schiff argued the entire U.S. equity market is overvalued, not just technology stocks, and predicted Bitcoin would suffer more severe losses as liquidity dries up for speculative assets.
The warning surfaced as Bitcoin traded near $62,852 before recovering above $64,000, still below recent highs. The Dow Jones Industrial Average rose over 400 points, contrasting with declines in tech shares, which Schiff called a temporary divergence. He contends Bitcoin behaves as a high-beta risk asset rather than a safe haven, leaving it exposed to sharper selloffs during equity downturns.
Schiff has long contrasted Bitcoin with gold, maintaining his bearish stance through multiple market cycles. His latest comments follow a broader pullback in digital assets as investors reassess risk appetite amid volatility in traditional equities.