After a weekend of ruthless losses, the correction appears to have paused. Bitcoin reclaimed $20,000 on Sunday after a bloodbath a day earlier had caused the world’s largest cryptocurrency by market cap to break below its all-time high from the previous crypto cycle.
Even though the recent corrective rally has provided somewhat of a sigh of relief for BTC prices, some market observers are far from convinced that the sell-off is over.
Billions of dollars have been wiped out of the total cryptocurrency market cap over the past month, and further losses could be on the horizon.
The latest crypto crash started when major coins dropped in tandem with the stock market last month on the gloomy economic outlook. The precarious situation was exacerbated by crypto lending platforms Celsius and Babel suspending withdrawals for all customers owing to liquidity issues.
Bitcoin’s price plummeted well below $19,782, the historic high it notched in December 2017. As of press time, BTC was trading at around $20,498.18, marking a transient victory for the bulls in the ongoing tug of war with the bears. Ethereum, which tanked to $896 on Saturday, has recovered over 9.42% on the day to $1,126.93 at press time.
But according to the founder, CEO, and chief global strategist of Euro Pacific Capital, Peter Schiff, investors shouldn’t be too excited about bitcoin recapturing the psychological $20,000 level.
In Schiff’s opinion, $20K is “the new $30K”, and the small bounce was just a big bull trap. Massive corrections don’t occur in a straight line, he further posited, and this crash “has been extremely orderly”.
The inveterate gold bug also said he does not yet see any signs of capitulation that tend to portend a bear market bottom.
You could say Schiff is a bitcoin perma-bear. Amid the crypto rout days ago, he forecasted that the No.1 cryptocurrency would crash all the way down to $6K. The stockbroker later gloated that his previous prediction of the global crypto market cap sinking under $800 billion had come true.
Schiff also said in an earlier tweet that bitcoin has been “dead money” for the last four years. This came after bitcoin made a trip to levels below its 2017 peak. By comparison, he posited that his favorite precious metal gold had soared by more than 40% over the same timeframe.
All in all, it’s too early to call a bullish trend reversal despite the rally from Saturday’s lows as macroeconomic concerns linger.
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