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

Popular market analyst Peter Schiff Peter Schiff Peter David Schiff is an American stockbroker, financial commentator, and radio personality. He co-founded Echelon Wealth Partners in Canada. He is involved in other financial firms including Euro Pacific Asset Management, as an independent investment advisor and Schiff Gold. He was on born March 23, 1963, in a Jewish family. Schiff started his career as a stockbroker at a Shearson Lehman Brothers brokerage in the early 1990s. In 2008 Schiff was an economic adviser to Ron Paul's presidential campaign. Before the financial crisis hit, Schiff frequently appeared on CNBC, Fox News, and Bloomberg to voice his opinions on the US economy and financial markets. Crypto and Blockchain Expert has expressed concerns about gold, silver, bitcoin, and the U.S. economy, especially if Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election 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.

Also Read: Why is the Crypto Market Down Today?

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