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Chairman of SchiffGold, economist and investor Peter Schiff, has taken to Twitter to comment on the current decline of the cryptocurrency market, predicting the mass selling of crypto and pointing to the collapse of stocks related to blockchain.
In the meantime, Bitcoin has fallen below the $37,000 zone.
"Bitcoin and blockchain-related stocks getting decimated"
Schiff believes that now that Bitcoin and the crypto market in general are plummeting, along with the stocks of companies working in the blockchain sphere, the whole crypto industry will be exposed as a "malinvestment."
Many redundancies in these firms will force retail crypto investors to sell their holdings in order to pay for bills that are rising.
#Bitcoin, #crypto, & #blockchain related stocks are getting decimated. Many of these companies will go bankrupt as the entire industry is exposed as malinvestment. Mass layoffs will result in mass selling of crypto as unemployed workers raise cash to pay soaring household bills.— Peter Schiff (@PeterSchiff) May 5, 2022
He has also commented on the overall excessive amount of new coins on the market, totaling 19,316. With the demand for various cryptocurrencies, he says, the overall decline in the capitalization of the crypto market in the past half-year has comprised 42%.
He believes that, eventually, the supply of cryptocurrencies will exceed the overall market cap.
Schiff expects BTC to fall below $30,000
In early January, Schiff expressed the view that the global leading cryptocurrency is likely to collapse below the $30,000 support.
Back then, Bitcoin was trading at the $35,000 level.
Now, that BTC has been hit by the recent interest rate hike by the Federal Reserve by half a basis point (the highest rise in 22 years), the price has fallen to the $36,362 zone.
The fall of Bitcoin is causing the rest of the crypto market's prices to go down as well.
As covered by U.Today on May 5, founder and managing partner of Fairlead Strategies, Katie Stockton, said during her interview with CNBC that the Bitcoin chart is broken, and she expects the leading crypto to find the next support level at roughly $27,200.