Peter Schiff, a renowned critic of cryptocurrencies, has once again expressed doubts about Bitcoin’s future. His latest focus is on Bitcoin ETFs, where he predicts a potential large-scale sell-off that could further destabilize the market. Schiff’s warnings come at a crucial time for Bitcoin, as the cryptocurrency is experiencing significant price fluctuations.
What’s driving the sell-off? Is the German government to blame? What’s next?
BTC to Drop at $38K if?
Schiff calculations say that over 70% of Bitcoin ETF investors are at a loss. He predicts that if Bitcoin’s price falls below $38,000, all Bitcoin ETF buyers will be in negative territory. This could trigger widespread selling as speculators exit their positions to cut losses. Schiff’s previous negative forecasts add weight to his current warning, suggesting that Bitcoin’s bear market may be far from over.
Looking at the current scenario, the $38K possibility mark aligns with the 100-day moving average and the middle trendline of the ascending channel, acting as a crucial support zone. The market is set for a consolidation phase, fluctuating between the $48K resistance and the $38K support.
Hence, technically, Bitcoin is having trouble moving past the $48K mark, causing its price to drop to $41K. The shorter-term 4-hour chart shows a balance between buyers and sellers. If Bitcoin falls below $42K, it might continue dropping to $38K.
Current Market Conditions
At the time of reporting, Bitcoin’s price had decreased by 7.27%, trading at $54,482.91 with a 24-hour trading volume of $40.5 billion. The 24-hour price range saw a low of $53,971.30 and a high of $57,453.84. This downward trend coincides with Mt. Gox’s significant Bitcoin transfer of $2.7 billion to an unknown wallet, raising concerns within the crypto community. Plus, U.S. spot Bitcoin ETFs reported outflows of $20.45 million, further contributing to the bearish sentiment.
Factors at Play
Schiff’s warnings and the current market conditions have reignited debates about Bitcoin’s stability and role as an investment asset. Despite the overall market downturn, Bitcoin’s dominance increased by 0.80% compared to the previous day, suggesting even steeper price declines in the altcoin market. However, the open interest in Bitcoin has plummeted by 11.19%, now holding a valuation of $16 billion.
Bitcoin’s current market capitalization stands at $1.07 trillion, reflecting the ongoing uncertainty and volatility in the cryptocurrency market.
Overall, the tug-of-war between the $38K and $48K price points is a matter of technical indicators and reflects the broader sentiment in the cryptocurrency market.
Also Read: Bitcoin Fear and Greed Index Drops as Mt. Gox Repayments Begin After a Decade
