The latest Bitcoin crash has seen BTC dropping below $58,000, causing concerns about a deeper correction in the cryptocurrency market. Despite briefly surpassing the $60,300 mark, investors are now wary due to increased market volatility and anxieties surrounding a potential US Federal Reserve rate cut during the upcoming FOMC meeting.
Renowned BTC critic Peter Schiff has reiterated his bearish outlook, predicting a significant downturn for the cryptocurrency, possibly seeing it plummet to $20,000 or even lower. Schiff highlighted a “triple top” formation in BTC’s price movement, indicating a potential bearish reversal and suggesting a fall to around $42,000. He further cautioned that this level might not serve as strong support, potentially leading to a further drop to $15,000 to $20,000, emphasizing his skepticism towards BTC’s valuation.
Moreover, Schiff compared Bitcoin unfavorably to precious metals, pointing out silver’s recent surge past $31 and gold’s record high of $2,586. He questioned Bitcoin’s status as “digital gold” or “digital silver,” hinting that its days of outperforming traditional assets could be numbered.
The ongoing US political turmoil, intensified by a recent assassination attempt on Donald Trump, has added to the market’s uncertainty, with traders adopting a cautious stance. The looming possibility of a 50 bps US Fed rate cut in the upcoming FOMC meeting has further rattled investors, with a potential rate reduction offering relief while any alternative move may trigger a broader market sell-off, potentially leading to a Bitcoin crash.
Currently, BTC is trading at $57,600, down over 4% with a trading volume of $30.8 billion. The cryptocurrency’s futures Open Interest has also fallen by 4% to $30.7 billion, indicating a prevailing pessimistic sentiment in the market. Analysts predict a further decline in BTC’s price, with a potential dip to $54,201 in the short term, warning of a prolonged bearish trend if it drops below $50,000.
In summary, the stage is set for a tumultuous period in the cryptocurrency market, with various factors contributing to the uncertainty surrounding Bitcoin’s future performance.