Bitcoin Will Crash to Zero Says Hedge Fund Manager Peter Schiff

TLDR

• Hedge fund manager Peter Schiff predicts Bitcoin will eventually fall to zero, though not in the next 5-10 years
• Schiff argues that even prices like $100 or $1,000 would be “near-zero” for investors who bought at higher levels
• Bitcoin recently fell below $63,000, down nearly 50% from its October 2024 peak of $124,000
• Schiff calls Bitcoin rallies “traps” in a bear market and advises investors to “sell the rip”
• At press time, Bitcoin was trading at $70,915.99, up 4.4% in 24 hours

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Hedge fund manager Peter Schiff has renewed his prediction that Bitcoin will ultimately crash to zero. The long-time cryptocurrency critic shared his views in a recent conversation with Sujal Jethwani.

Schiff acknowledged that Bitcoin likely won’t disappear in the next five to 10 years. However, he believes the cryptocurrency will eventually lose all value over a longer time horizon.

His comments come as Bitcoin recovers from a sharp decline. Last week, the cryptocurrency fell below $63,000, marking almost a 50% drop from its peak of $124,000 in October 2024.

Schiff argued that the distinction between zero and “near-zero” doesn’t matter much for investors. Even if Bitcoin trades at $100 or $1,000, he said it would represent “a lot of value for basically nothing.”

The hedge fund manager emphasized that investors should focus on total capital loss rather than whether Bitcoin technically reaches zero. He used a hypothetical example to illustrate his point.

Over the past century, Schiff suggested that Bitcoin will be forgotten entirely. He believes no meaningful demand will remain for the cryptocurrency in the long term.

Bear Market Rallies Are Traps

Schiff also warned investors about Bitcoin’s recent price rallies. On February 6, he posted on social media platform X that sharp upward moves in bear markets create false optimism.

He pointed to MicroStrategy’s 25% gain and Bitcoin’s 11% increase on the same day. His advice to investors was direct: “Sell the rip!”

Schiff maintains that Bitcoin lacks intrinsic value unlike gold. He views the cryptocurrency as a speculative bubble where early adopters profit only if later buyers enter the market.

The economist has frequently compared Bitcoin’s performance to gold. He noted that Bitcoin is now 60% lower than its November 2021 high when measured in gold terms.

Criticism of Financial Mania

He also criticized U.S. political support for cryptocurrency. Schiff contrasted this with China’s focus on manufacturing and gold accumulation.

Bitcoin supporters counter that the network operates as a decentralized monetary system. They point to continuous uptime, deep liquidity, and fixed supply as key features supporting long-term value.

At press time, Bitcoin was trading at $70,915.99, up 4.4% in the past 24 hours.

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