Ethereum Going to $2K Says Peter Schiff, Altcoins Bleed Amid US Recession Fears

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As an analyst with over two decades of experience navigating financial markets and their intricacies, I find myself cautiously optimistic amidst the current market turmoil. The recent drops in Bitcoin and Ethereum prices, coupled with the declining performance of Ethereum ETFs, are certainly cause for concern. However, it’s important to remember that every bear market is a breeding ground for potential opportunities.

Fear of a recession in the U.S. is causing ripples throughout various investment sectors, including Bitcoin and the wider cryptocurrency market which have suffered significant losses. The price of Ethereum has plummeted by approximately 6%, falling below $3,000 – a level not seen since early July. In just the past week, Ethereum’s value has dipped more than 8.5%. Analysts are predicting further declines in the near future.

Peter Schiff- Ethereum Can Go to $2K

Over the past fortnight following their debut, Ethereum ETFs have experienced significant withdrawals. Notably, renowned economist Peter Schiff has pointed out this downward trend in Ethereum ETF performance, with a drop exceeding 15%. With the price of ETH remaining below $3,000, Schiff anticipates that it could plummet even lower, potentially reaching $2,000.

On a Friday, there was a total withdrawal of approximately $54.3 million from the Ether Exchange-Traded Fund (ETF) as per data from Farside Investors. Meanwhile, Grayscale’s ETH experienced outflows amounting to $61.4 million, while Fidelity’s FETH saw an inflow of $6 million. The remaining Ether ETFs operating in the US reported no inflows for that day.

Gold advocate Peter Schiff capitalized on the current situation to assert that a potential US recession would be advantageous for gold. He reasoned that a recession might cause substantial federal budget shortfalls, devalue the U.S. dollar, plummet real interest rates, and inflate prices significantly. Furthermore, he is convinced that the Federal Reserve may revert to quantitative easing as a means to monetize debt, stimulate the economy, and support market stability – all of which could boost gold prices.

It’s worth noting that Donald Trump, a previous U.S. President, suggested paying off some of the $35 trillion national debt by issuing cryptocurrency checks.

Altcoins Bleed Heavily

In addition to Ethereum, other cryptocurrencies in the altcoin market are experiencing significant drops, ranging from 5% to 10%. Despite large altcoin investors (whales) purchasing the price decreases, trading volume has not improved notably.

Kate Young Ju, an analyst at CryptoQuant, pointed out the emergence of accumulation zones or “buy walls” for altcoins compared to Bitcoin and stablecoins. Yet, she cautioned that trading activity remains relatively subdued.

As a researcher, I underscored Young Ju’s point: although buy walls are encouraging, the long-awaited “alt season” – marked by heightened trading activity – has yet to materialize. This presents an opportune moment for us to delve into some potentially lucrative altcoins and strategize for the approaching bull run.

The structure of the market is starting to solidify for alternative cryptocurrencies, whether paired with stablecoins or Bitcoin, yet trading volumes remain relatively low at this time.

If alt season means a surge in volume, it’s not here yet.

Currently, it’s an opportune moment to investigate potential alternatives ahead of the upcoming bull market, as we may not have much time left once Bitcoin reaches its all-time high again.

— Kate The Alt (@kate_young_ju) August 2, 2024

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2024-08-03 08:06