Gold bug Peter Schiff has pounced. The notorious Bitcoin skeptic claimed BTC is primed for a feverish plunge if it breaks through critical support.
The flagship cryptocurrency has today slipped to its lowest level in a month shortly after the minutes of the December meeting of the United States Federal Reserve were released. The Fed indicated that it will be shrinking its $8.3 trillion balance sheet in 2022 after announcing a gargantuan asset-buying program in 2020 when the COVID-19 pandemic started.
Now, Schiff is warning investors to be cautious and sell before it’s too late.
Bitcoin Price Poised For Leg Lower Towards $15,000?
The mood in the crypto markets today has been quite sour. Bitcoin shed over 10% to trade around $42,200 after the minutes were released. Other top cryptocurrencies mirrored bitcoin’s performance after the hawkish Fed news, with Ethereum logging in 11.23% losses on the day.
At present, BTC is teetering near its interim support level at $42,000 and prominent gold advocate Peter Schiff is saying that investors should get out immediately.
Schiff says Bitcoin will fall to $30,000 if the $42K level is broken, adding that a devastating drop to the $15,000 zone will be next if that support line fails to hold. The Europac chairman then encouraged leveraged investors to sell now and repay their underlying debts to avoid being liquidated at painfully lower prices later on.
At the same time, crypto analyst CryptoWhale expects Bitcoin to sink under $10,000 this year.
The perma-bear told his over 402,000 followers on Wednesday that such a price retracement is “very obvious” once people realize that the current bubble is being propped up by fake money and fraud. “Bitcoin has very low demand. Only people buying are late retail who FOMO in after Tether pumps it. That will be ending very soon,” CryptoWhale concluded.
It’s worth mentioning that the analyst has been predicting sub-$10,000 levels since October last year.
Where Is The Market Heading?
The market is currently in a bad place and while bitcoin has fallen to a 1-month low, it still remains down less than 40% from its November all-time high. If cryptocurrencies continue to experience headwinds from bearish news, a proper bottom might take more time to be established in even a lower price range.
Other market pundits like the CEO of FTX exchange, Sam Bankman-Fried, are suggesting that the wise thing to do during a bear market is to build because “down today doesn’t mean down tomorrow.”