Well-known economist and gold advocate Peter Schiff is warning investors to prepare for a major downturn in the U.S. economy. He believes a sharp selloff in the U.S. dollar, stocks, and government bonds (Treasuries) could be on the way, triggered by the return of high “reciprocal” tariffs on trade.
In a recent post on X, Schiff says many investors are underestimating the economic impact, and stock market dip-buyers may be in for a surprise. This warning has raised concerns: if the stock market crashes again, will Bitcoin and other cryptocurrencies crash too?
For context, during the COVID-19 market crash in March 2020, Bitcoin and Ethereum both fell by nearly 46% to 47%, just like major stock indexes. This shocked many people who believed Bitcoin would act as a “safe haven” during economic turmoil, similar to gold. Instead, the data showed that crypto prices fell just as hard, and just as fast, as stocks.
Some investors hope that if the stock market crashes, people might shift their money into crypto. Nonetheless, experts believe crypto is still seen as a high-risk investment, especially in uncertain economic times. Most traders tend to pull money out of risky assets during crashes, not put more in. So if there’s another crash, Bitcoin and other cryptos could fall again, at least for a while.
On the other hand, financial author Robert Kiyosaki has a very different take. He recently posted on X that he hopes Bitcoin crashes, because he wants to buy more. Kiyosaki believes Bitcoin will eventually reach $1 million per coin, and says he’s willing to take the risk, even if it means being a “sucker.”
Experts say don’t panic during market drops. If you own crypto like Bitcoin, it’s better to hold than sell in fear. Only invest what you can afford to lose.
Also Read: Kidney for Bitcoin? Peter Schiff & Michael Saylor Go Head-to-Head
