The correction looks to have stalled after a weekend of merciless losses. Bitcoin recaptured $20,000 on Sunday, a day after a massacre forced the world’s largest cryptocurrency by market size to fall below its previous crypto cycle’s all-time high.
Despite the fact that the recent corrective recovery has offered some comfort to BTC prices, some market experts remain skeptical that the sell-off is done.
Over the last month, the total cryptocurrency market cap has been wiped out by billions of dollars, and further losses could be on the way.
The most recent crypto meltdown began last month, when major coins fell in lockstep with the stock market due to the bleak economic outlook. Due to liquidity concerns, crypto loan services Celsius and Babel suspended withdrawals for all customers, exacerbating the hazardous situation.
Bitcoin’s price has fallen considerably below $19,782, its all-time high set in December 2017. BTC was trading at roughly $20,498.18 as of press time, representing a temporary success for the bulls in the ongoing tug of war with the bears. At press time, Ethereum, which had fallen to $896 on Saturday, had regained 9.42 percent on the day to $1,126.93.
However, investors shouldn’t get too thrilled about bitcoin recapturing the psychological $20,000 mark, according to Peter Schiff, the founder, CEO, and chief global strategist of Euro Pacific Capital.
Schiff: The Bear Market Has Found Its Bottom Not yet a member
According to Schiff, $20K is “the new $30K,” and the brief bounce was nothing more than a gigantic bull trap. He went on to say that massive corrections don’t happen in a straight line, and that this crash “has been highly orderly.”The avowed gold bull also stated that he has yet to notice any symptoms of capitulation, which usually signal a bear market bottom.
Schiff may be described as a “perma-bear” for bitcoin. He predicted the No. 1 cryptocurrency would drop all the way down to $6K during the crypto rout a few days ago. Later, the stockbroker boasted that his prognosis of the global crypto market valuation falling below $800 billion had come true.
In a previous tweet, Schiff stated that bitcoin has been “dead money” for the past four years. This comes after bitcoin fell below its all-time high in 2017. In comparison, he said that gold, his favorite precious metal, had increased by more than 40% over the same time period.
