Economist Peter Schiff – the favorite opponent of bitcoin evangelists on social media – has again sounded his trumpet of doom for cryptocurrency, particularly Bitcoin and Ether.
According to the gold bug, selling bitcoin to pay the bills is necessary “As the recession continues, conditions will only deteriorate.” The guy predicts an economic collapse and asserts that bitcoin will plummet to $20,000 while Ether will fall to $1,000.
As soon as the U.S. published its inflation figures for May 2022, with the Consumer Price Index fixed at 8.6 percent, the cryptocurrency market came under more pressure. The cryptocurrency market as a whole is in the red on Monday, falling 5 percent.
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Peter Schiff has never been a believer of crypto (CNBC).
Peter Schiff: Pessimistic Analysis For Bitcoin
The chief economist and main strategist at Euro Pacific Capital, as well as the inventor of Schiffgold, has issued a pessimistic prognosis for the cryptocurrency sector as a whole. On Saturday, he sent out the following tweet:
“Bitcoin is destined to fall to $20,000 and Ethereum to $1,000… Don’t buy this dip. You’ll lose a lot more money.”
Bitcoin, the largest cryptocurrency in the world, is trading 4.4 percent lower at $27,409 with a market worth of $521 billion as of press time. As the likelihood of a U.S. recession grows, so does the pressure to sell cryptocurrencies.
Peter Schiff stated on May 8 to his more than 708,000 Twitter followers:
“If #Bitcoin breaks firmly below $30,000, it seems likely that it will drop below $10,000.”
That means, according to the “Bitcoin Prophet of Doom,” Bitcoin owners must now make a crucial decision. “What will you do? You should decide now so that you do not panic and make a hasty decision in the heat of the moment.”
BTC total market cap at $457 billion on the daily chart | Source: TradingView.com
The Detractor And His Dire Prediction For Crypto
Peter Schiff elaborated on his gloomy forecast, noting in many tweets on Sunday that food and energy prices are growing and “many bitcoin holders will be compelled to sell in order to afford the expenses. Gas stations and grocery stores do not take bitcoin.”
Investors broadly anticipate that the U.S. central bank will raise interest rates by a half percentage point later this week in a continuous effort to combat inflation.
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For their part, the central banks of Australia and Canada raised their rates by up to 50 basis points last week, while the European Central Bank announced that it would conclude its asset purchase program and begin rate hikes later this summer.
Interestingly enough, traditional hedge funds, despite the aforementioned negative price movements, continue to pump money into the market, according to a recent article.
Featured image from Blogtienao, chart from TradingView.com