Peter Schiff, a prominent anti-Bitcoin crusader, strongly advises investors against buying cryptocurrency. He blew his trumpet of warning earlier today after Bitcoin and altcoins recorded a massive crash.
The Pressure On Crypto Intensified
Peter Schiff is an economist who became popular for his constant criticism against cryptocurrency right from inception. He reportedly encouraged crypto investors to withdraw and use crypto investments to pay bills as the recession progressed.
He added that the economy will fall and crypto too will continue to crash. Also, he predicted that Bitcoin and Ethereum would respectively hit the $20,000 and $1000 price soon.
The pressure on cryptocurrency became more intensified right after the release of the U.S. inflation data. The data showed that the customer price index (CPI) had increased significantly by 8.6% recently.
This depicts that inflation is on the rise in the country. Consequently, the crypto was placed under more pressure and it plunged into more dip by 8%.
Schiff’s Pessimistic Analysis on Crypto
On Saturday, Schiff took to Twitter to post his personal pessimistic roadmap for the entire crypto space. He predicted that Bitcoin and Ethereum would fall below the $20,000 and $1000 price level very soon.
He warned investors to completely stay away from this crypto or they would lose their funds.
As at the press time, Bitcoin was trading below $25,000 with a 8% decrease in market value. Furthermore, the pressure to sell out cryptocurrencies increases as the U.S. recession grows.
Peter Schiff stated on May 8 to his more than 708,000 Twitter followers:
He earlier predicted that should Bitcoin fall below $30,000, it would touch down below $10,000 eventually.
This posed a difficult question in the heart of crypto investors. They have to decide what to do on time to avoid hasty or foggy decisions at the rush hour.
Many Investors Hope Feds Would Tame Investors Soon
The prominent economist expressed his unfavorable observation about the current recession in his tweets. He said that the prices of food and energy are skyrocketing.
Consequently, many crypto investors would have no choice but to sell their investments to fend for themselves.
Additionally, the hopes of investors lies in the capability of the U.S. central bank to adequately tame the inflation beast. The U.S regulators are hiking up interest rates to this effect.
Last week, both the Canadian and Austrian central banks raised their rates to 50% to help calm the inflation. Furthermore, the European Central Bank after concluding its assets purchase project, would also raise its rates.
On the contrary, traditional hedge funds reportedly kept pumping more funds into the market. Consequently, inflation continues to rage.