Reserve

FOMC

Bitcoin

Gold

Financial analyst and renowned Bitcoin (BTC) critic Peter Schiff has once again sounded alarms about the state of the financial markets. In a series of posts on X, Schiff emphasized the precarious situation facing both traditional markets and cryptocurrencies. In addition, he weighed in on the Federal Reserve monetary policy. 
<h2 id="peter-schiff-predicts-crypto-stock-crash">Peter Schiff Predicts Crypto &amp; Stock Crash</h2> 
“Markets are sounding an alarm. #Stocks are selling off. Safe haven currencies like the Japanese yen and Swiss franc are rising while commodity currencies like the Australian dollar are falling. If the #Fed doesn’t cut rates soon, the #recession may start with a stock market crash,” Peter Schiff warned on X. This statement comes amid a backdrop of significant market volatility, with the economist pointing to the Federal Reserve’s potential role in averting a deeper crisis. 
In addition, Peter Schiff’s observations extend beyond stocks. “Gold and silver are selling off too. The markets are about to price in a hard landing. The key is, will the #Fed allow that to happen, or will it deliver the one thing that can stop a full-blown stock market crash, including a financial crisis and recession before the election?” he questioned. 
In the crypto realm, Schiff highlighted the recent decline in Bitcoin and Ethereum despite the launch of eight <a href="https://coingape.com/bitcoin-etf-inflows-surge-as-ether-etf-loses-133m-in-hype-shift/" target="_blank" rel="noopener">Spot Ether ETFs</a>. “In case you haven’t noticed, despite yesterday’s launch of 8 #EthereumETFs, #Ether is already down over 7% in the past 24 hours. #Bitcoin is down too, falling 2% over the same time period.” 
Moreover, Peter Schiff concluded, “The stage is set for a #crypto crash, just in time for the Nashville Bitcoin conference,” he noted. This drop in crypto prices adds to the growing unease among investors. Furthermore, his comments reflect a broader concern that without a rate cut, the economy might face a severe downturn. 
<h3 id="fed-rate-cut-probability">Fed Rate Cut Probability</h3> 
Hence, the upcoming Federal Open Market Committee (FOMC) meeting on July 30-31 could be pivotal. If the Federal Reserve considers the ongoing market dynamics and decides to cut interest rates, it could provide a much-needed boost to high-risk assets like Bitcoin and other cryptocurrencies. 
Historically, lower interest rates tend to encourage investment in such assets. However, according to the <a rel="nofollow" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank">CME FedWatch tool</a>, the probability of a 25 basis points <a href="https://coingape.com/fed-to-mirror-ecb-rate-pause-heres-what-it-means-for-bitcoin/" target="_blank" rel="noopener">Fed rate cut</a> in July is a mere 10.9%. In contrast, the likelihood of a similar rate cut in September stands at 76.7%. 
Also Read:&nbsp;<a href="https://coingape.com/why-is-bitcoin-price-going-down-today/" target="_blank" rel="noopener">Why Is Bitcoin Price Falling Today?</a> 
<h2 id="japanese-yen-crypto-liquidations">Japanese Yen &amp; Crypto Liquidations</h2> 
The Japanese yen has surged to its highest level in two months against the US dollar, indicating a potential narrowing of the interest rate differential between the two countries. This stronger yen has negatively impacted Japanese exporters, pushing the Nikkei 225 index into a technical correction. 
The yen’s strength has introduced additional volatility across global markets. Moreover, gold and Bitcoin registered significant liquidations. Gold has entered a sharp correction, dropping 1% to 2374.85 per ounce at the time of reporting. In addition, Silver has also seen a steep decline, down 4.04% to $27.73 per ounce. These corrections reflect broader market instability, exacerbated by the yen’s appreciation. 
In the cryptocurrency market, the 24-hour liquidation figure has reached $293 millio. Out of this, long positions accounted for $266.60 million and short positions for $26.40 million. In addition, $82.9 million in Bitcoin long positions have been liquidated in the past 24 hours, according to <a rel="nofollow" href="https://www.coinglass.com/LiquidationData" target="_blank">Coinglass</a>. 
Thus, investors are closely monitoring the yen’s strengthening to gauge future market movements amid Peter Schiff’s warnings. Meanwhile, the <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener">Bitcoin price</a> has fallen 3.47% to $64,234.54 at press time on Thursday, July 25. This decline is partly attributed to the recent distribution of assets by <a href="https://coingape.com/kraken-exchange-under-fire-as-some-mt-gox-creditors-complain/" target="_blank" rel="noopener">Mt. Gox</a> to its creditors, increasing selling pressure in the market. 
Also Read:&nbsp;<a href="https://coingape.com/russia-duma-passes-bill-to-legalize-bitcoin-mining-crypto-payments/" target="_blank" rel="noopener">Russia Duma Passes Bill To Legalize Bitcoin Mining &amp; Crypto Payments</a> 
The post <a href="https://coingape.com/peter-schiff-warns-bitcoin-crypto-crash-july-fomc-meet-to-turn-tables/">Peter Schiff Cautions Bitcoin &amp; Crypto Crash, July FOMC Meet To Turn Tide?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Peter Schiff Cautions Bitcoin & Crypto Crash, July FOMC Meet To Turn Tide?

Tabla de contenidos

Coingape News Media

Otros artículos publicados el 25 jul 2024

WazirX Hacker Converts Stolen Funds to $206 Million Worth of ETH

South Korea's New Crypto Law Takes Effect: What We Know

TapSwap Daily Code for 26 July 2024: A Tap-to-Earn Game

WazirX Launches Massive $23M Bounty to Track Down $234M Stolen Assets

HSBC Australia To Block All Customer Payments to Crypto Exchanges

Helium and Beam Outshone by Rollblock: Decentralized Casino Enterprise Leaves Competitors For Dust

¡Únete a nuestro boletín gratuito para recibir actualizaciones diarias de criptografía!