- Peter Schiff predicts Bitcoin will crash below $16,500 if it loses the $50,000 support level.
- Schiff warns that another major Bitcoin crash would threaten MicroStrategy’s BTC-heavy strategy.
- Nearly $9 billion exits the stablecoin market as Bitcoin faces mounting selling pressure.
Gold supporter Peter Schiff has predicted that Bitcoin will crash to $16,500 as soon as its price breaks below the $50,000 level.
In a post on X, Schiff said Bitcoin’s decline would accelerate once it loses the $50,000 support level. He expects Bitcoin to revisit its 2022 bear market low before the end of 2026.
“The Bitcoin collapse is gathering steam. I expect the momentum to pick up once Bitcoin breaks $50K,” Schiff wrote.
He also argues that the crash would spell trouble for Strategy, the largest corporate holder of Bitcoin.
“If so, it’s curtains for MicroStrategy,” he added.
At the time of writing, Bitcoin was trading around $67,254, down 2.94% over 24 hours and approximately 12% over the past week. Its intraday low stood at $66,200.
A decline to $50,000 would represent another significant correction, while a drop below $16,500 would return Bitcoin to levels last seen during the 2022 bear market.
Schiff Faces Criticism Over His Bitcoin and Gold Predictions
Schiff’s latest forecast has attracted criticism from holders, with commentators challenging his repeated bearish calls.
One commentator, Konstantin (@Konstantin_on_x), questioned Schiff’s track record of predicting Bitcoin crashes. He also urged Schiff to address criticism of his recent gold recommendations.
Another commentator, Mad Markets, questioned whether Schiff would apologize to investors who followed his gold advice when the precious metal traded around $5,400.
The criticism follows another post in which Schiff urged investors to sell Bitcoin and buy gold. He argued that Bitcoin’s roughly 22% decline over seven weeks showed no signs of slowing and that the market had yet to experience the panic selling associated with a market bottom.
Schiff also dismissed comparisons between Bitcoin and gold. He attributed gold’s decline to investors’ misunderstanding of interest rates and inflation, while describing Bitcoin’s losses as a consequence of its weakening speculative bubble.
His position reflects his long-standing preference for gold as a store of value over Bitcoin. Meanwhile, gold is down 30.98% from its peak of $5,600, while Bitcoin is down 46.75% from its all-time peak.
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Nearly $9 Billion Leaves the Stablecoin Market
Beyond Schiff’s predictions, market data points to a significant decline in crypto liquidity. Analyst Crypto Rover reported that the latest Bitcoin downturn coincided with the largest decline in stablecoin market capitalization in 2026.
His figures showed:
- During January’s 38.42% Bitcoin correction, stablecoin market capitalization fell by 1.92%.
- During May’s 30.11% Bitcoin decline, stablecoin market capitalization dropped by 3.70%.
- During October’s 23.92% Bitcoin decline, stablecoin market capitalization fell by 4.86%.
Crypto Rover estimated that nearly $9 billion exited the stablecoin market during the latest downturn, highlighting a reduction in capital circulating within the crypto ecosystem.
Additional data from CryptoQuant author Amr Taha showed that Binance’s ERC-20 stablecoin reserves fell to $31.4 billion on November 12, their lowest level since December 2024.
A November 13 breakdown showed:
- USDT: $29.5 billion.
- USDC: $1.92 billion.
Despite the decline, Binance held approximately 63.1% of the $49.8 billion in stablecoin reserves tracked across major centralized exchanges. Other platforms accounted for the remaining $18.4 billion.
The decline in reserves highlights reduced stablecoin liquidity and suggests that capital is leaving the crypto market.
Bitcoin’s decline below $70,000, combined with falling stablecoin market capitalization and exchange reserves, points to weakening liquidity across the crypto market.
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