Economist Peter Schiff Warns Bitcoin Could Plunge to $20,000
Bitcoin has recently dropped back below $58,000, raising concerns about a deeper market correction.
Despite briefly exceeding $60,300, the leading cryptocurrency’s current volatility has intensified worries about the upcoming Federal Reserve meeting, where a potential rate cut could impact the market.
Peter Schiff, a prominent Bitcoin skeptic, has renewed his warning about the cryptocurrency’s future. He suggests Bitcoin might experience a significant downturn, potentially falling to as low as $20,000. Schiff points to the current price trends as indicative of a “triple top” formation, which often precedes a bearish reversal. He predicts a decline to around $42,000, with the possibility of even steeper drops if this level fails to hold.
This looks like a triple top to me. The chart is even worse if you price #Bitcoin in #gold. At a minimum, Bitcoin is headed to the upward trend line at about $42K, but I doubt it will hold. A retest of longer-term support at $15K–$20K is more likely. Look out below. @saylor pic.twitter.com/d83NRh4Rx5
— Peter Schiff (@PeterSchiff) September 16, 2024
Schiff has also compared Bitcoin unfavorably to precious metals, noting recent gains in silver and gold. He argues that Bitcoin is failing to live up to its “digital gold” label and might struggle to maintain its value.
READ MORE: Bitcoin Faces Uncertainty as First Fed Rate Cut in Years Looms
Compounding the uncertainty, recent U.S. political turmoil, including an assassination attempt on former President Donald Trump, has further unsettled markets. Traders are remaining cautious amid this unpredictability.
In addition, speculation around the Federal Reserve’s decision on a potential 50 basis point rate cut is adding to market jitters. The outcome of this week’s FOMC meeting could significantly influence Bitcoin’s trajectory, with any substantial rate cuts potentially offering temporary relief or exacerbating market declines.
As of now, Bitcoin is trading at approximately $57,600, down over 4%, with a substantial increase in trading volume and a drop in futures open interest, reflecting a bearish sentiment. Analysis suggests Bitcoin might continue to decline, with potential further drops if it falls below $50,000.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
