Global Financial Expert Peter Schiff
Prominent market analyst Peter Schiff has voiced worries about the US economy, bitcoin, silver, and gold, particularly if Donald Trump is re-elected. According to Schiff, a low dollar and rising oil prices will cause a decline in the market for gold, silver, and bitcoin and will also cause difficulties for the recently launched Ethereum (ETH) ETF.
Is the market going to see a big drop?
With the launch of the eight Ethereum ETFs, Schiff highlighted the short-term detrimental effects on cryptocurrency prices in a series of tweets. Over the past 24 hours, he observed a significant drop in Ethereum, which fell by over 7%, while Bitcoin declined by 2% in the same period. Given the imminent Bitcoin conference in Nashville, Schiff sees this as the beginning of a potential cryptocurrency crash.
Tough situation for gold, silver, and financial markets
Schiff’s fears extend beyond cryptocurrencies to the larger financial market. He observed that gold and silver were also seeing a sell-off, showing a challenging market ahead. This pattern has implications for the newly established Ethereum ETF and could signal broader market volatility. Stock prices are falling, safe-haven currencies like the yen and Swiss franc are rising, and commodity currencies like the Australian dollar are falling.
Conflict of Views
Schiff has been skeptical of bitcoin, saying Ethereum could fall to $1,500 and that the bad market in that currency is still continuing. In April, he said there was less interest in bitcoin.
However, Kiyosaki believes that the value of gold, silver, and bitcoin will grow. He predicts that an ounce of gold will cost $3,300 and one bitcoin will cost $105,000 by 2025. He believes that Trump’s support for expanded oil production, combined with the dollar’s dropping value, will bolster these assets.
Role of the Federal Reserve
Schiff questions if the Federal Reserve will allow the slump to continue or act to avoid a full-fledged stock market crash, financial crisis, and recession before the election. He adds that the Fed’s activities will shape the market’s trajectory. Schiff warns that if the Fed does not drop interest rates soon and resume quantitative easing (QE), a recession may begin with a stock market crash.
What’s Next?
Ethereum ETFs have swiftly influenced the market, with experts predicting that they will increase ETH prices but not more than Bitcoin ETFs. Diversification could be achieved with a 70/30 split between BTC and Ethereum.
