Ethereum (ETH) has taken a significant plunge, dropping below the $3,000 mark and igniting concerns about a potential further decline. The broader cryptocurrency market is also experiencing a downturn, mirroring the jitters caused by looming US recession fears.
Spot Ethereum ETFs, which recently launched, have witnessed substantial outflows in the past two weeks, adding to the bearish sentiment surrounding the second-largest cryptocurrency. Renowned economist Peter Schiff, a staunch gold advocate, has seized this opportunity to predict an even steeper fall for ETH, potentially reaching as low as $2,000.
Schiff’s bullish stance on gold is underpinned by his expectation of a US recession. He argues that such an economic downturn could trigger larger federal deficits, a weaker dollar, and elevated inflation. In response, the Federal Reserve might resort to quantitative easing, which could drive up gold prices.
In a surprising twist, former President Donald Trump has suggested using cryptocurrency to alleviate a portion of the US’s staggering $35 trillion debt. While this proposal has sparked debate, it underscores the growing interest in digital assets as a potential financial tool.
Also Read: Ethereum’s Pectra Upgrade: A Complex Puzzle with Missing Pieces
The cryptocurrency market is experiencing a broader correction, with altcoins also suffering significant losses. Despite recent buying activity by large altcoin holders, trading volumes remain subdued. CryptoQuant analyst Kate Young Ju has observed the formation of buy walls for altcoins paired with Bitcoin and stablecoins, a positive indicator. However, she cautions that the anticipated “alt season” – characterized by increased trading activity – has yet to materialize.
As the market navigates these turbulent waters, investors are advised to exercise caution and conduct thorough research before making any investment decisions. The current downturn presents an opportunity for long-term investors to accumulate promising altcoins in preparation for the next bull run.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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