© Reuters
Investing.com – The price is still near the psychological mark of $30,000, but it should see a dizzying drop soon if financial expert Peter Schiff is correct.
According to him, all risky assets will experience a huge decline. In this regard, Schiff goes so far as to assert that gold stocks will be the new tech stocks. . He thus alludes to the performance of big tech stocks (NYSE:), which have seen a meteoric evolution during the phase of ultra-accommodative monetary policy by the Fed.
MicroStrategy (NASDAQ:), the company that holds more than 130,000 bitcoins on its balance sheet, also benefited. The BTC price crash envisioned by Schiff, however, could quickly become a problem. That’s why Schiff confronted CEO Michael Saylor with the question of what he would do if bitcoin fell below $3,800. Such a large price loss would still mean that the value of the coins on the balance sheet would drop by 86 percent.
According to Schiff, the lack of liquidity will be fatal to bitcoin, which is why it can very quickly drop very low in the event of a loss of confidence.
And while the financial expert advises to steer clear of bitcoin and other currencies, Bloomberg commodity expert Mike McGlone said anyone who doesn’t have cryptocurrencies in their wallet is “really stupid.”
McGlone argues that bitcoin is much more decentralized than, say, . In the context of tighter regulatory conditions, this is a point that works in favor of BTC, because it thus becomes almost untouchable:
“You can’t touch it, and you can’t remove it, it’s just unprecedented; it’s untouchable.”
For the immediate future, however, McGlone also expects the price of the world’s largest cryptocurrencies to decline. This is because the likelihood of a recession increased after OPEC’s April 2 decision to cut oil production.
“We had a conference call this morning, and our economist Anna Wong said, ‘Yeah, their base case is that the recession will start in the third quarter.
Bitcoin: technical benchmarks
Bitcoin is currently gaining 0.2% with a price of $28,091, while it has risen 2.91% on a weekly basis.
The cryptocurrency has been trading in a consolidation range since March 17, while the 23.6 percent Fibo retracement of $26,901 offers support.
If this level is breached on the daily close, the downside correction may extend towards the 38.2 percent Fibo retracement of $25,504.
But until that happens, the March 30 high of $29,160 and the psychological mark of $30,000 remain the ultimate targets.
By Marco Oehrl