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 Peter Schiff gave his new targets for Bitcoin and Etherum for this weekend, predicting a massive drop in 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.
The correction in the market was fueled by the unexpected inflation figures, beating the expectations of traditional markets and cryptocurrencies. Since Bitcoin and other cryptocurrencies mostly follow risky asset trends, the market had no choice but to redistribute their funds towards 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.
But while Bitcoin and the market in general are losing entries, Ethereum has its own problems during the 11% drop. Following the de-anchoring of the stETH and ETH pair on Celcius, the lending and borrowing market could face serious problems if ETH falls below $1,150, as it will initiate a massive cascade of sell-offs in the market.
The “crypto gold” developed by Paxos Global is leading the cryptocurrency 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 is trading at $27,487 and losing 3% in the past 24 hours.
