Cryptocurrencies have been on volatile ride this year, and on Sunday, noted economist Peter Schiff warned that more selling could happen in the space in the unfolding week.
What Happened: Bitcoin BTC/USD on Sunday fell below the psychological barrier of $58,000, said Schiff in a post on X, formerly Twitter. After dropping to an intraday low of $57,298.95, the apex crypto has recovered and traded at $59,344.48, down 1.17%, according to Benzinga Pro data.
Schiff said if the Bitcoin fell below its July low of $53,717.38 (reached on July 5) by Monday, when the stock market opens, the Bitcoin exchange-traded funds will gap down by over 15% . This would mark a 30% decline from their January highs, he said.
“A loss of that magnitude may finally trigger mass ETF liquidations. If so, brace for a #Crypto black Monday,” he said in the post.
Why It’s Important: Following SEC approval, spot Bitcoin ETFs began trading in January, and this was seen as a key catalyst that can improve crypto adoption.
Schiff said Bitcoin ETF buyers are not “long term HODLers” and that they have also never experienced losses of this size. “HODL” Is a crypto slang term meaning to buy-and-hold indefinitely.
“This will be rude awakening, especially since they were told Bitcoin was a safe have, store of value,” Schiff added.
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