The post Peter Schiff Warns of Crypto Market Crash: FED’s Action Under Scrutiny appeared first on Coinpedia Fintech News
Popular market analyst Peter Schiff has expressed concerns about gold, silver, bitcoin, and the U.S. economy, especially if Donald Trump is re-elected. Schiff predicts market crashes for gold, silver, and bitcoin and a harsh landing for the recently announced Ethereum (ETH) ETFs due to a weaker dollar and rising oil costs.
Bigger Market Crash Incoming?
In a series of tweets, Schiff pointed out the immediate negative impacts on cryptocurrencies following the launch of eight Ethereum ETFs. He noted a significant drop in Ether, which plummeted over 7% in the past 24 hours, while Bitcoin fell by 2% during the same timeframe. Schiff interprets this as the start of a potential crypto crash, clashing with the upcoming Nashville Bitcoin conference.
He also warns that Ethereum ETFs will negatively impact Bitcoin, as investors may shift their funds. Bloomberg’s senior ETF analyst, Eric Balchunas, reported the quick rise in interest for Ether ETFs, with $461 million traded in the first 90 minutes, which supports Schiff’s concerns and indicates a potential shift away from BTC.
Hard Landing for Gold, Silver, and Financial Market
Moving on, Schiff’s concerns went beyond cryptocurrencies to the broader financial market. He notes that gold and silver also face sell-offs, signaling a tough market ahead. This trend affects the newly launched ETH ETFs and hints at wider market trouble. Stocks are declining, safe-haven currencies like the yen and Swiss franc are gaining, and commodity currencies like the Australian dollar are dropping.
Clash of Opinions
Schiff has been critical of Bitcoin, predicting that its bear market isn’t finished and that Ethereum could fall to $1,500. He also stated in April that the interest in Bitcoin is fading.
On the other hand, Kiyosaki believes that gold, silver, and bitcoin prices will rise, predicting gold will hit $3,300 an ounce and bitcoin could reach $105,000 by 2025. He thinks Trump’s support for a weaker dollar and expanded oil drilling will boost these assets.
Federal Reserve’s Role
Schiff raises the question of whether the Federal Reserve will allow this downturn to continue or intervene to prevent a full-blown stock market crash, financial crisis, and recession before the election. He emphasizes that the Fed’s actions will determine the market’s direction. If the Fed does not cut rates soon and return to quantitative easing (QE), Schiff warns, a recession could begin with a stock market crash.
What Next?
Ethereum ETFs have quickly influenced the market, with experts suggesting they’ll boost ETH prices but no more than Bitcoin ETFs. Investors might use a 70/30 BTC to ETH split for diversification. However, Despite Ethereum’s rise, Bitcoin’s future is uncertain, with rumors of Trump endorsing Bitcoin adding interest.
Bitcoin is down 2% to $66K, and Ethereum has dipped 1.4% to $3,412, indicating cautious market sentiment.