As analyst suggests, cryptocurrency market may fall even deeper over weekend, as traders look for ways of de-risking portfolios
One of the most famous Bitcoin and crypto critics, gold advocate, economist and fund manager Петер Сцхифф gave his new targets for Bitcoin and Etherum for this weekend, predicting a massive plunge to critical prices and recommending avoiding the “buy the dip” strategy.
Schiff’s prediction was based on the most recent sell-off on the cryptocurrency market, with Bitcoin dropping to $27,500 and falling off the consolidation range formed since the beginning of May.
Ово би могао бити тежак викенд за #црипто. #Битцоин изгледа да ће се срушити на 20 хиљада долара и #Етхереум до $1К. Ако је тако, целокупна тржишна капитализација од скоро 20 дигиталних токена би пала испод 800 милијарди долара, са скоро 3 трилиона долара на свом врхунцу. Не купујте овај дип. Изгубићете много више новца.
- Петер Сцхифф (@ПетерСцхифф) Јун 11, 2022
The correction on the market was fueled by the unexpected inflation numbers, exceeding expectations of both traditional and cryptocurrency markets. Since Bitcoin and other cryptocurrencies are mostly following the tendencies of risk-on актива, the market had no other choice but to redistribute their funds toward safer options, leaving digital assets aside.
Inflation hedges like gold went the opposite way by rallying by more than 2.5%, which, considering gold’s average volatility as a significant move, especially after facing a 1% loss.
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But while Bitcoin and the market in general are losing inflows, Ethereum has its own problems during the 11% plunge. Following the depegging of the stETH and ETH pair on Celcius, the lending and borrowing market may face serious issues if ETH falls below $1,150, as it will launch a massive cascade of liquidations on the market.
The “crypto gold” developed by Paxos Global is leading the цриптоцурренци market while trading with a 1% premium to gold CFDs. The difference between the price of two assets is caused by increased demand incoming from cryptocurrency traders that are willing to hedge against inflation and the sell-off on the market.
At press time, Bitcoin trades at $27,487 and is losing 3% in the last 24 hours.
Source: https://u.today/bitcoin-to-20000-and-ethereum-to-1000-says-economist-and-gold-advocate-peter-schiff