PANews reported on June 3 that Peter Schiff, a gold supporter and long-time Bitcoin critic, has stated that the current Bitcoin market is overly optimistic and is still far from bottoming out. Schiff predicts that if Bitcoin falls below $50,000, the price could quickly drop below $20,000, shaking the confidence of long-term holders (HODLers) and triggering a larger sell-off.

Schiff also noted that the market needs to pay attention to whether the Bitcoin drop is a harbinger of a broader correction in risk assets. If the Bitcoin crash is limited to the crypto market, it may be due to industry-specific factors; however, if it simultaneously affects risk assets such as stocks, it could indicate that deeper macroeconomic risks are accumulating.

He further pointed out that in this scenario, investors may turn back to gold, cash, and other traditional safe-haven assets in search of greater security and certainty.