The world’s most famous Bitcoin critic, economist Peter Schiff, made a price prediction for Bitcoin and Ethereum this weekend. He predicted a huge fall to critical levels and advised investors to avoid a ‘buy the dip’ strategy.
Corrections due to high inflation figures
Schiff based his crypto forecast on the most recent crash in the crypto market. Bitcoin’s price dropped to $27,150 and was outside the consolidation range formed since May.
Unexpectedly high inflation rates in America fueled the correction in both the stocks and crypto markets. Since Bitcoin and other cryptocurrencies usually follow the trends of risky assets, the price decline was to be expected after these high inflation figures. Investors saw no choice but to redistribute their money to safer options. Inflation hedges such as gold rose in value.
Ethereum faces an additional problem
While the entire crypto market is actually in serious trouble due to the inflation figures, Ethereum has an extra problem. Indeed, after the decoupling of the stETH and ETH pair on Celcius, the crypto lending market may face serious problems. This can occur when the Ether price falls below $1,150. This in turn can cause a huge waterfall of liquidations in the market.