Peter Schiff Warns of Crypto Market Crash: FED’s Action Under Scrutiny

Popular market analyst Peter Schiff Peter Schiff   Peter Schiff is a prominent US-based investor and stock trader. He is noted for predicting the 2008 financial crisis. A strong supporter of gold and a critic of Bitcoin, Schiff stresses the importance of real currencies instead of cryptocurrencies.   He presents the "Peter Schiff Show" podcast, discussing economic policies, currency depreciation, and investment approaches. His opposing stance still impacts those looking for options outside traditional finance.   Quick Facts   Full name Peter David Schiff Birth 23-03-1963, New Haven, Connecticut, United States  Nationality American Education University of California, Berkeley Known for Gold Investment advocacy   Peter Schiff - Career Highlights & Events   2005: Founded Euro Pacific Capital   2007: Predicted the 2008 housing crisis   2009: Launched "Peter Schiff Show" podcast   2011: Named among Top 100 Financial Advisors (Worth)   2023: Testified before U.S. Congress on inflation policies   Crypto and Blockchain Expert has expressed concerns about gold, silver, bitcoin, and the U.S. economy, especially if Donald Trump Donald Trump   Donald J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.     President is re-elected. Schiff predicts market crashes for gold, silver, and bitcoin and a harsh landing for the recently announced Ethereum (ETH) ETFs due to a weaker dollar and rising oil costs. 

Bigger Market Crash Incoming?

In a series of tweets, Schiff highlighted the immediate negative impacts on cryptocurrencies following the introduction of eight Ethereum ETFs. He observed a dramatic drop in Ether, which fell by over 7% in the past 24 hours, while Bitcoin decreased by 2% in the same period. Schiff views this as the beginning of a potential crypto downturn, coinciding with the upcoming Nashville Bitcoin conference.

He also warns that Ethereum ETFs will negatively impact Bitcoin, as investors may shift their funds. Bloomberg’s senior ETF analyst, Eric Balchunas, reported the quick rise in interest for Ether ETFs, with $461 million traded in the first 90 minutes, which supports Schiff’s concerns and indicates a potential shift away from BTC.

Hard Landing for Gold, Silver, and Financial Market

Moving on, Schiff’s concerns went beyond cryptocurrencies to the broader financial market. He notes that gold and silver also face sell-offs, signaling a tough market ahead. This trend affects the newly launched ETH ETFs and hints at wider market trouble. Stocks are declining, safe-haven currencies like the yen and Swiss franc are gaining, and commodity currencies like the Australian dollar are dropping.

The Outlook? Bearish.

Schiff has been critical of Bitcoin, predicting that its bear market isn’t finished and that Ethereum could fall to $1,500. He also stated in April that the interest in Bitcoin is fading. 

On the other hand, Kiyosaki believes that gold, silver, and bitcoin prices will rise, predicting gold will hit $3,300 an ounce and bitcoin could reach $105,000 by 2025. He thinks Trump’s support for a weaker dollar and expanded oil drilling will boost these assets.

The Fed Dilemma

Schiff questions whether the Federal Reserve will let the downturn persist or intervene to avert a major stock market crash, financial crisis, and recession before the election. He emphasizes that the Fed’s actions will significantly influence the market’s trajectory. If the Fed does not soon cut rates and return to quantitative easing (QE), Schiff warns of a possible recession beginning with a stock market crash.

What Next?

Ethereum ETFs have quickly influenced the market, with experts suggesting they’ll boost ETH prices but no more than Bitcoin ETFs. Investors might use a 70/30 BTC to ETH split for diversification. However, Despite Ethereum’s rise, Bitcoin’s future is uncertain, with rumors of Trump endorsing Bitcoin adding interest. 

Bitcoin is down 2% to $66K, and Ethereum has dipped 1.4% to $3,412, indicating cautious market sentiment.

Is this the beginning of a market meltdown, or a golden opportunity? You decide.