In his latest tweet, Peter Schiff, known as the Golden Wolf, chairman of SchiffGold and famous Bitcoin skeptic, expresses his feelings about the current state of the cryptocurrency industry, Bitcoin and the altcoin market in general. Stating that the current supply is significantly above the current demand in the market, Peter Schiff underlines that such conditions can lead to rapid price declines of alternative cryptocurrencies and the industry as a whole. For details of the news Cryptocoin. com continue reading e.
Golden wolf Peter Schiff: Supply will exceed demand and prices will almost overnight.
Referring to a famous 15-20% daily correction introduced in May, Peter Schiff states that when supply exceeds demand, prices can become padollar almost overnight. Golden Wolf points out that during the last correction in the market, both Bitcoin and altcoins faced a massive correction of 5-10%:
There are currently over 12,000 crypto tokens, 84 of which have a market cap of over $1 billion. There is nothing special about Bitcoin. The altcoin supply will continue to grow until the crypto bubble is overturned. Supply will exceed demand and prices will collapse almost overnight.
Can Bitcoin replace gold as a hedge asset?
Various market analysts and experts state that the correction of the cryptocurrency market may be due to the increased global risks associated with potential defaults that Chinese developer Evergrande may face. At press time, Bitcoin is trading in the $42,600 range after correcting 3% daily. After the strong decline, Bitcoin bounced back from $40,000 and is currently not moving in either direction. According to crypto analyst Arman Shirinyan, it forms a candlestick pattern known as the “bullish hammer” that usually appears below the downtrend move.
In the same thread, Peter Schiff responded to one of the commenters who spoke of Bitcoin’s potential to remove the spread and delay from financial systems:
The only thing Bitcoin will take out is money out of the pockets of people stupid enough to buy it.
Previously, Peter Schiff has supported the view that Bitcoin has replaced gold as a hedge asset. The chairman of SchiffGold claimed that if Bitcoin becomes a new popular hedge asset, there will be less selling pressure on its gold, leading to a potential rally.
“The main sign of a bear market is the unprofitability of the majority of market participants or organizations”
The recent drop in Bitcoin’s price has had a variety of consequences, including the rise of “unprofitable wallets” as reflected in the last ten chains of data provided by Glassnode. Stating that a total of 8.4% of the market entries are concentrated between $ 43,000 and $ 48,000, analyst Arman Shirinyan thinks that Bitcoin’s fall below $ 43,000 may have an unpleasant effect on the market and makes the following assessment:
As the market faces increased volatility, we can track the change in profitability of on-chain assets. It allows traders to identify numerous things: cost-based concentration, potential support and resistance zones, and potential market sentiment. By the time Bitcoin’s price hits $30,000, the percentage of profitable assets has already reached 70 percent. The main sign of a bear market is the unprofitability of the majority of market participants or organizations. The recent Bitcoin rally, in which the price of the first cryptocurrency reached $60,000 from the $10,000 range, was followed by a massive increase in the percentage of profitable assets.
According to the analyst, the average entry to Bitcoin remains around $20,000, which means there could be strong support for the price if the market drops another 50% in the future.