Bitcoin (BTC) $59,001has fallen below $58,000 again, sparking fears of a deeper correction in the crypto market. However, in the last 24 hours, the leading cryptocurrency had given investors hope for a recovery by surpassing the $60,300 level. Also, with market volatility increasing, concerns about the potential impact of this week’s US Federal Reserve (Fed) rate cut are also growing.
Peter Schiff Predicts $20,000 for Bitcoin
BTC critic Peter Schiff has issued another warning about the future of the world’s largest cryptocurrency by market cap amid ongoing market uncertainty. In a recent X post, Schiff said the crypto is on the verge of a major drop, hinting at a possible Bitcoin crash. He likened the current price action to a “triple top” formation that often signals a bearish reversal.
Peter Schiff: “The triple top formation on Bitcoin charts could be a sign of a decline.”
Schiff noted that the crypto’s upward trendline indicates a drop to around $42,000. He also emphasized that this level may not be maintained for a long time and that the crypto could fall even further, potentially dropping to $15,000 to $20,000. As is known, Schiff has long been known as a crypto critic and has consistently argued that BTC’s value is inflated and unsustainable. Moreover, he has been sharing these disaster scenarios for years, only the numbers change.
The economist also made a comparison between Bitcoin and precious metals, noting that silver recently rose above $31 and gold rose to a new record of $2,586. He stressed that the leading cryptocurrency does not deserve its reputation as “digital gold” or even “digital silver,” adding that its days of superior performance may be numbered.
Fed Rate Cut and BTC
The already volatile cryptocurrency markets are also being negatively affected by the political chaos in the US. A recent assassination attempt on Donald Trump sent shockwaves through the political arena, causing concerns. The last two attacks may gain more traction in terms of the consequences of language in politics.
Due to these events, investors are cautious and prefer to wait on the sidelines during turbulence. The unpredictable nature of such events affecting the markets adds another layer of risk to the financial markets.
On the other hand, discussions about a potential 50 basis point US Fed rate cut are making investors nervous. This week’s FOMC meeting could be critical for BTC and the overall crypto market. While a significant rate cut could provide relief, a move to the contrary could trigger a broader sell-off. There is also the risk that rapid rate cuts could pump the idea that “the Fed is worried about a recession” into the markets. So, cryptocurrencies remain under pressure in both scenarios.
At the time of writing, BTC is trading at $57,600, down over 4%, with trading volume up 130% to $30.8 billion. Futures open interest is also down 4% to $30.7 billion. The weakness in futures confirms investor concerns.
According to one of the recent Bitcoin price analyses, BTC is likely to continue its decline and drop to $54,201 in the near term. Some analysts are concerned that sales will continue below this level to $50,000.
These developments require investors to be cautious. Given the uncertainty and volatility in the markets, investment decisions should be made with caution and market trends should be closely monitored.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
