Bitcoin Crash: BTC has once again slumped below $58,000, sparking fears of a deeper correction in the crypto market. This comes after the flagship crypto crossed the $60,300 mark in the last 24 hours, giving investors hope for a recovery. However, with market volatility increasing, concerns are mounting over the potential impact of a US Federal Reserve rate cut in this week’s FOMC meeting.
Amid this, BTC critic Peter Schiff warns over a potential correction for the crypto to $20,000, or even lower.
Peter Schiff Predicts Bitcoin Crash To $20K
BTC critic Peter Schiff has issued another warning about the future of the world’s largest crypto by market cap amid the ongoing market uncertainty. In a recent X post, Schiff suggested a potential Bitcoin crash and said that the crypto is on the verge of a major downturn. He compared the current price movement to a “triple top” formation, which often signals a bearish reversal.
Meanwhile, Schiff said that the crypto’s upward trend line suggests a fall to around $42,000. In addition, he emphasized that this level might not hold for long, suggesting that the crypto could plunge further, potentially reaching $15,000 to $20,000. Notably, he is well known as a long-time critic of the crypto and has consistently argued that BTC’s value is overinflated and unsustainable.
Source: Peter Schiff, X
In another latest post, the economist also drew a comparison between Bitcoin and precious metals, highlighting silver’s recent surge past $31 and gold’s rise to a new record high of $2,586. He stressed that the flagship crypto is not living up to its reputation as “digital gold” or even “digital silver,” suggesting that its days of outperformance may be numbered.
BTC Price Dips Amid US Political Chaos and Fed Rate Cut Concerns
Adding to the already volatile situation, U.S. political chaos is further weighing on market sentiment. A recent assassination attempt on Donald Trump has caused shockwaves, creating uncertainty in the political landscape.
Notably, traders have been cautious, with many opting to stay on the sidelines amid the turmoil. The unpredictable nature of these events adds another layer of risk to the financial markets.
Meanwhile, discussions over a potential 50 bps US Fed rate cut have investors on edge. This week’s FOMC meeting could be pivotal for BTC and the broader crypto market. A significant rate cut could provide relief while any other move could trigger a wider sell-off, raising concerns over a potential Bitcoin crash.
As of writing, BTC price was down over 4% and exchanged hands at $57,600, with its trading volume rocketing 130% to $30.8 billion. Besides, the crypto’s futures Open Interest also plunged 4% to $30.7 billion, indicating a gloomy sentiment hovering in the market.
Meanwhile, a recent Bitcoin price analysis suggests that the crypto could continue its downward slide, with a potential dip to $54,201 in the near term. Besides, if the crypto breaks below $50,000, the analysis warns that it could face an extended bearish trend.
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