Peter Schiff believes that Ethereum can correct another 30% from the current levels amid the soaring outflows from the Ether ETFs recently.
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.
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.
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