The crypto market could be heading for serious trouble.
Economist and gold advocate Peter Schiff has issued a stark warning that the losses that are about to hit the crypto industry will be staggering. According to Schiff, the fallout could trigger a wave of bankruptcies, defaults, and mass lay-offs as Bitcoin and Ether, the two largest cryptocurrencies, are poised for a significant crash.
Such a downturn, he suggests, would not only wipe out much of the altcoin market but could also create broader systemic risks.
Bitcoin vs Gold: Schiff Stands Firm
Schiff doubled down on his bearish stance, noting that Bitcoin is now down 34% against gold since its August record high. He warns investors not to assume the crypto bear market is ending anytime soon. He has even said that gold is more likely to reach $1 million than Bitcoin, showing just how skeptical he is about crypto.
Schiff’s remarks come at a time when markets are under extreme pressure. The broader market fears pushed Bitcoin below $104K levels recently, but it has since recovered to 106,898. In contrast, gold hit new highs this week above $4,300.
Also Read: Is Gold’s Rise an Urgent Warning Sign for Bitcoin and the Global Economy?
James Wynn Warns of Imminent Crash
Adding to the concern, crypto trader James Wynn has also warned of a market bloodbath within the next 72 hours. Wynn believes the U.S. stock market might also see a “Black Monday” event soon, with prices dropping sharply. For Bitcoin, he expects a fall to around $88,000–$92,000, raising further alarms for investors.
Bitcoin: A Stress Indicator
But not everybody is bearish.
Strike Founder & CEO Jack Mallers points out that Bitcoin reacts first to financial stress. With yields dropping, spreads widening, and banks under pressure, BTC is already sensing trouble.
He notes that when the Federal Reserve is eventually forced to inject liquidity, BTC is likely to move first and outperform other assets, giving some hope for investors watching closely.
Buying Opportunity For BTC?
Meanwhile, CryptoQuant analysts note that Bitcoin’s Open Interest has dropped to its lowest levels.
When Bitcoin fell about 30% earlier this year, its Open Interest showed extreme fear, hinting the market might be hitting a bottom. Now, after a 20% drop from recent highs, the same signals are showing up again, with lots of liquidations and cautious trading.
However, when the Open Interest hit similar lows in the past, Bitcoin quickly found support and bounced back. So the latest drop could be another chance for strategic buying, especially since long-term on-chain trends still favor BTC.
Bitcoin is struggling to reclaim the $108,000-$109,000 support level. If it manages to break above, it could climb toward $112K soon, but if it fails to hold this zone, the price might slip back toward the $100K range.
A Market Reset
Despite the recent week of intense volatility, some traders believe the worst may be behind us. Trader Virtual Bacon notes that every bull market reaches a point where panic peaks, charts look broken, and everyone assumes it’s over. But that moment often marks a reset, not an ending.
The recent drop helped flush out excess leverage and rebuild a cleaner base for upside. In his view, this is exactly how the market breathes, before the next move.
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