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Economist and longtime Bitcoin critic Peter Schiff warned that Bitcoin could collapse to $20,000 if the asset loses key support near $50,000.
His comments come as geopolitical tensions escalate following reports that the US military is preparing strike options against Iran.
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!
— Peter Schiff (@PeterSchiff) February 19, 2026
Peter Schiff’s Anti-Bitcoin Perception is Stronger than Ever Before
Schiff argued that a drop below $50,000 now appears likely and could trigger a much deeper decline. He suggested Bitcoin may repeat historic crash patterns seen in previous cycles, even despite increased institutional adoption and broader mainstream interest.
His warning arrives as Bitcoin trades near $66,000, down sharply from its recent cycle highs.
Schiff has remained one of Bitcoin’s most consistent skeptics for over a decade. He has repeatedly described Bitcoin as a speculative bubble and argued that it lacks intrinsic value.
Throughout previous bull markets, he predicted major crashes, while continuing to promote gold as a superior store of value.
However, Bitcoin has also repeatedly recovered from severe corrections and reached new highs over time.
His latest warning comes at a fragile moment for crypto markets. Global risk sentiment has weakened amid fears of potential US military action against Iran.
Historically, Bitcoin often falls in the early phase of geopolitical shocks as investors reduce exposure to volatile assets.
On-chain data supports the view that short-term weakness remains possible. The Short-Term Holder SOPR indicator currently sits below 1, showing that recent buyers are selling at a loss.
This reflects fear and ongoing capitulation among weaker investors.
At the same time, another key metric tells a different story. Bitcoin’s short-term Sharpe ratio has dropped to extremely negative levels.
This suggests Bitcoin has already experienced unusually poor returns relative to volatility.
In past cycles, such conditions often appeared near local bottoms rather than the beginning of prolonged collapses.
Bitcoin’s Short-Term Sharpe Ratio Hit a Level Historically Reserved For Generational Buying Zones
— CryptoQuant.com (@cryptoquant_com) February 19, 2026
“The arrows in the chart illustrate this clearly: each prior extreme negative reading was followed by violent recoveries to new highs.” – By @MorenoDV_ pic.twitter.com/nxFBUgHxi9
This creates a mixed outlook. While geopolitical stress and weak sentiment could push Bitcoin lower in the short term, much of the speculative excess appears already flushed out.
Schiff’s prediction reflects rising uncertainty—but on-chain data suggests the market may be closer to a reset phase than the start of a full-scale collapse.
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