While recession concerns in the US have caused major fluctuations in investment vehicles, Bitcoin and the broader crypto market have experienced significant declines. The price of leading altcoin Ethereum fell 6 percent to below $3,000, its lowest level since early July. ETH has fallen more than 8.5 percent in the past week, and analysts predict a bigger crash is coming.
Peter Schiff: Ethereum could fall to $2,000
Spot Ethereum ETFs have experienced major outflows in the last two weeks since their launch. Renowned economist Peter Schiff drew attention to this decline in the performance of Ethereum ETFs, stating that they have lost more than 15 percent in two weeks. While the price of ETH is hovering below $3,000, Peter Schiff predicted that the price could fall to $2,000. On Friday, spot Ether ETFs experienced a net outflow of $54.3 million, according to Farside Investors. Grayscale’s ETH saw an outflow of $61.4 million, while Fidelity’s FETH saw an outflow of $6 million. All other Ether ETFs in the US saw no inflows yesterday.
Gold enthusiast Peter Schiff used the opportunity to say that a recession in the US would be a bullish signal for gold. He explained that a recession could lead to much larger federal budget deficits, a weakening dollar, collapsing real interest rates, and much higher inflation. He also believes that the Federal Reserve will likely return to quantitative easing to print debt, stimulate the economy, and support markets, which could push gold prices higher. Interestingly, former President Donald Trump suggested writing crypto checks to pay off some of the US’s $35 trillion debt.
Altcoin projects are bleeding
Along with Ethereum, the altcoin world is also experiencing a major correction, with the largest altcoins falling by 5-10 percent. Although whales have recently made dips, trading volumes have not reached the desired level. CruptoQuant analyst Kate Young Ju emphasized that buy walls have formed for altcoins traded in exchange for Bitcoin and stablecoins. However, she noted that trading volumes are low. Young Ju stated that buy walls are a positive sign, but the much-anticipated “altcoin season” characterized by a large increase in trading volume has not yet arrived. She said that during this period, it would be good for investors to research altcoins that promise a promising future rise.
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