Bitcoin (BTC) was basically unchanged on Friday, settling at $36,000. In comparison to yesterday’s steep price drop, the cryptocurrency has traded with less volatility in the last 24 hours.
The price of Bitcoin is falling, which is forcing the rest of the crypto market to plummet as well. Now that Bitcoin has fallen below $37,000, Peter Schiff expects a massive crypto sell-off.
Peter Schiff, the chairman of SchiffGold and an economist and investor, took to Twitter to remark on the present slump of the cryptocurrency market, forecasting widespread dumping of crypto and predicting the collapse of blockchain-related equities.
Schiff believes that now that Bitcoin and the crypto market in general, as well as the stocks of blockchain-related companies, are in free fall, the entire crypto industry will be revealed as a “malinvestment.”
Many of these firms’ redundancies will compel retail crypto investors to liquidate their assets in order to pay escalating bills.
He’s also spoken out against the overabundance of new coins on the market, totaling 19,316.
According to him, the overall reduction in the value of the crypto market in the last half-year has been 42 percent due to demand for various cryptocurrencies.
He believes that the supply of cryptocurrencies will eventually outnumber the whole market capitalization.
Schiff predicted that the world’s most popular cryptocurrency would fall below the $30,000 support level in early January. BTC’s price has dropped to $36,362 as a result of the Federal Reserve’s recent interest rate hike of half a basis point (the largest increase in 22 years).
As momentum indications turned negative, Bitcoin broke below a short-term uptrend. The cryptocurrency might fall further lower, possibly to $30,000, the bottom of a year-long trading range.
BTC price has struggled to hold $40,000 in recent months, and is now down 47% from its all-time high of $69,000 in November of last year.