Altcoin
Ethereum Going to $2K Says Peter Schiff, Altcoins Bleed Amid US Recession Fears
The US recessionary fears have sent jitters across the asset classes with Bitcoin and the broader crypto market seeing major drops. The Ethereum price has crashed 6% going under $3,000, the level last seen in early July. Over the last week, the ETH price has tanked by more than 8.5% with analysts expecting further crash ahead.
Peter Schiff- Ethereum Can Go to $2K
The spot Ethereum ETFs have seen major outflows in the last two weeks since launch. Popular economist Peter Schiff highlighted this declining performance of Ethereum ETFs, dropping more than 15% in two weeks. As the ETH price stayed under $3,000, Peter Schiff predicted that it could crash further all the way to $2K.
On Friday, the spot Ether ETF saw net outflows of $54.3 million, per the data from Farside Investors. Grayscale’s ETH saw $61.4 million in outflows while Fidelity FETH saw $6 million in inflows. The rest of all other Ether ETFs in the US saw zero inflows yesterday.
Gold buff Peter Schiff took this opportunity to say that a US recession would be bullish for Gold. He explained that a recession could lead to much larger federal budget deficits, a weaker dollar, collapsing real interest rates, and much higher inflation. Also, he believes the Federal Reserve will potentially return to quantitative easing to monetize debt, stimulate the economy, and prop up markets, which could drive gold prices higher.
Interestingly, former President Donald Trump proposed to write crypto checks in order to clear some part of the US $35 trillion debt.
Also Read: Donald Trump Turns Down Debate With Kamala Harris
Altcoins Bleed Heavily
Along with Ethereum, the rest of the altcoin space is seeing massive correction with the top alts falling anywhere between 5-10%. Although the ALT whales have been buying the dips recently, the trading volumes haven’t picked up well.
CruptoQuant analyst Kate Young Ju highlighted the formation of the buy walls for ALTs paired against Bitcoin and stablecoins. However, she noted that the trading volumes remain low.
Young Ju emphasized that while buy walls are a positive sign, the much-anticipated “alt season,” characterized by a surge in trading volume, has not yet arrived. She said that this would be a good time to research some promising altcoins and prepare for the next bull run.
Buy walls are forming for altcoins with both stablecoin and #Bitcoin pairs, but volumes are still low.
If alt season means a surge in volume, it’s not here yet.
Now’s the time to research promising alts for the next bull run—time might be short once Bitcoin hits a new ATH. pic.twitter.com/v1133n6G9L
— Kate The Alt (@kate_young_ju) August 2, 2024
Also Read: Peter Schiff Warns US Recession & Inflation Spike Ahead
Bhushan Akolkar
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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