- Bitcoin critic Peter Schiff believes that soaring inflation and recession will force more HODLers to sell their BTC to pay for essentials.
- The liquidity crisis faced by Celcius Network has put huge selling pressure on ETH, and the broader crypto market.
With the United States releasing its inflation data last Friday, there’s a sharp reaction across the broader crypto market. Over the last weekend, a heavy sell-off in the crypto market has pushed the BTC price to $25,000.
The broader crypto market is currently down 6.3 percent eroding more than $100 billion in the last 24-hours. Bitcoin has corrected 7.5 percent and is currently trading at $25,000. Bitcoin critic Peter Schiff states that the BTC price can further slide to $20,000. Schiff’s comments about the Bitcoin price came soon after last week’s U.S. inflation data. He also advised investors not to buy the dips. Schiff wrote:
This could be a rough weekend for #crypto. Bitcoin looks poised to crash to $20K and #Ethereum to $1K. If so, the entire market cap of nearly 20K digital tokens would sink below $800 billion, from nearly $3 trillion at its peak. Don’t buy this dip. You’ll lose a lot more money.
Schiff further added that long-term holders will soon start selling their BTC as the inflation situation gets worse. Thus, HODLers will sell to cover costs as per Schiff. He added:
When Bitcoin crashed during #Covid no one needed to sell. Consumer prices were much lower and #HODLers got stimulus checks. The need to sell Bitcoin to pay the bills will only get worse as the #recession deepens and many #HODLers lose their jobs, especially those working for soon to be bankrupt #blockchain companies. If circumstances change, long-term buyers without paychecks will be forced to sell.
Ethereum (ETH) tanks under $1,400, altcoins bleed
Apart from Bitcoin, the altcoin space has seen heavy bleeding. The world’s second-largest cryptocurrency Ethereum (ETH) has been on a free fall and is currently down 30 percent on the weekly chart. As of press time, ETH is trading 9.54 percent down at a price of $1316.
Ethereum has a different set of problems to deal with. The de-pegging of staked ETH (stETH) from the real ETH on the lending platform Celsius Networks is a major concern. Earlier today, Celsius announced that it has paused all withdrawals, swaps, and account transfers as it faces major liquidity challenges.
Previous rumours suggested that Celsius was selling staked ETH (stETH) to meet the liquidity demand on the platform. As per the latest data, Celcius has moved a massive amount of ETH to the FTX exchange over the last three days. If the ETH price drops to $1,150, we can see major liquidations going ahead.
Update: Celsius has transferred about 104,000 ETH to FTX in the past three days, including about 50,000 ETH today, 12,000 ETH yesterday, and 42,000 ETH the day before yesterday. In addition, Celsius also transferred about 9,500 WBTC to FTX today.https://t.co/RaiJTJIVm9 https://t.co/1RQaa9fT3u
— Wu Blockchain (@WuBlockchain) June 13, 2022
Along with Ethereum (ETH), all of the top ten altcoins have corrected between 8-15 percent. Since the start of March 2022, the altcoin market has corrected over 50 percent eroding over $600 billion of investors’ wealth.