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Bitcoin to $20,000 and Ethereum to $1,000, Says Economist and Gold Advocate Peter Schiff

Sun, 06/12/2022 - 15:00
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Arman Shirinyan
As analyst suggests, cryptocurrency market may fall even deeper over weekend, as traders look for ways of de-risking portfolios
Bitcoin to $20,000 and Ethereum to $1,000, Says Economist and Gold Advocate Peter Schiff
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One of the most famous Bitcoin and crypto critics, gold advocate, economist and fund manager Peter Schiff gave his new targets for Bitcoin and Etherum for this weekend, predicting a massive plunge to critical prices and recommending avoiding the "buy the dip" strategy.

Schiff's prediction was based on the most recent sell-off on the cryptocurrency market, with Bitcoin dropping to $27,500 and falling off the consolidation range formed since the beginning of May.

The correction on the market was fueled by the unexpected inflation numbers, exceeding expectations of both traditional and cryptocurrency markets. Since Bitcoin and other cryptocurrencies are mostly following the tendencies of risk-on assets, the market had no other choice but to redistribute their funds toward safer options, leaving digital assets aside.

Inflation hedges like gold went the opposite way by rallying by more than 2.5%, which, considering gold's average volatility as a significant move, especially after facing a 1% loss.

Ethereum (ETH) Plunges to $1,400 with No Relief in Sight

But while Bitcoin and the market in general are losing inflows, Ethereum has its own problems during the 11% plunge. Following the depegging of the stETH and ETH pair on Celcius, the lending and borrowing market may face serious issues if ETH falls below $1,150, as it will launch a massive cascade of liquidations on the market.

The "crypto gold" developed by Paxos Global is leading the cryptocurrency market while trading with a 1% premium to gold CFDs. The difference between the price of two assets is caused by increased demand incoming from cryptocurrency traders that are willing to hedge against inflation and the sell-off on the market.

At press time, Bitcoin trades at $27,487 and is losing 3% in the last 24 hours.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.