Economist Peter Schiff recently published his predictions about the American economy and risky assets like crypto.
This publication was made via Twitter, where he tweeted about how the next crypto move is especially for Bitcoin and Ethereum.
Peter Schiff Bitcoin Crash Prediction
He made this prediction and statement after the American Central Bank published data related to rising inflation.
It was noted that US inflation rose again to 8.6%, and the previous inflation was at 8.3%.
This increase sparked concerns about a potential recession that would occur shortly. There are even some economists who state that the majority of countries have entered a recession. In a recession, individuals are generally advised to save cash because the price of most consumer goods will rise. So many are withdrawing funds from riskier assets like crypto just in case a significant recession arrives.
In response to this condition, Peter Schiff predicted that currently, crypto would fall further. He predicts Bitcoin (BTC) will reach $20,000, and Ethereum (ETH) will reach $1,000.
“Don’t buy during the correction this time. You will lose a lot of money,” he added after stating the price correction target for ETH and BTC.
He made this prediction by reflecting on the current macroeconomic conditions, mainly due to rising inflation.
Inflation that rises again in a dire economic condition can lead to stagflation conditions where the money supply increases, but the money does not push the economy up.
Generally, in history, an economy in stagflation will be more difficult to recover than a recession, so many are worried and prepared to save fiat money or cash.
Predictions from Macroeconomic Factors
Schiff then explained that this price correction prediction was purely due to macroeconomic factors.
“The rising prices of oil, energy, and other primary consumer goods will force Bitcoin investors to sell them to cover the cost of living. Because no store accepts Bitcoin for transactions,” he said.
He added that when Covid-19 struck, there was no need for a correction as it is now because at that time, the prices of essential goods had not increased, and all received aid funds.
But because the price has gone up, many risky asset investors will be forced to sell their assets for living expenses, and there will likely be a lot of bankruptcy. There were mixed responses to Peter Schiff’s statement, one of which emphasized that this would not only happen to crypto but all risk assets.
Several other big investors consider this condition a condition to buy because of the low price.
Tim Draper, well-known venture capital and crypto industry, recently purchased with his prediction that Bitcoin will hit $250,000.
Ted Cruz, an American Senator, also stated that he is optimistic about Bitcoin and has high buying potential.
The CEO of Devere Group, Nigel Green, also has the same view with the prediction that prices will rise at the end of the year.
JP Morgan also stated that Bitcoin will still have the potential to rise. A survey from Deloitte also says that 85% of Americans will use crypto as a means of payment. For now, the narrative in the market is moving wildly, with negative and positive sentiments clashing.
More News About Crypto : NEWS
Follow our Twitter : https://twitter.com/DinoDapps
