According to a well-known digital asset critic, it is quite possible that the altcoin market will “explode” in a single day.
In a recent tweet, Peter Schiff, chairman of SchiffGold and a well-known Bitcoin critic; He expressed his thoughts on the current state of the cryptocurrency industry, Bitcoin and the altcoin market in general. Stating that the current market supply is significantly greater than the current market demand, Schiff said that such conditions could cause a sharp decline in the value of alternative coins and the global crypto industry as a whole.
Schiff, referring to the famous May month, when the market experienced a daily correction of 15-20 percent; He noted that when supply exceeds demand, prices can explode in as little as overnight. During the recent market correction, both Bitcoin and altcoins faced significant drops of 5-10%.
“There are currently over 12,000 crypto tokens, of which 84 have a market capitalization of over $1 billion. There is nothing special about Bitcoin. The altcoin supply will continue to increase until the crypto bubble bursts. Supply will outpace demand and prices will drop almost overnight.”
There are now over 12,000 crypto tokens, 84 of which currently have market caps above $1 billion. There is nothing special about #Bitcoin. The supply of altcoins will keep growing until the crypto bubble pops. Supply will overwhelm demand and prices will implode almost overnight.
— Peter Schiff (@PeterSchiff) September 21, 2021
Several market analysts and crypto experts have stated that the correction in the cryptocurrency market may be due to the increased global risks associated with potential default that Chinese developer Evergrande may face.
At the time of writing, Bitcoin is trading in the $43,000 range after experiencing an 8.5 percent correction in one day, according to data from CoinGecko. After the strong drop, Bitcoin has bounced back from $40,000 and is currently not moving in either direction, forming a candlestick pattern known as the “hammer bull” that often appears below the downtrend move.
In the same Twitter thread, Schiff responded to one of the commenters who talked about Bitcoin’s potential to remove costs and latency from financial systems:
“The only thing Bitcoin will eliminate is money out of the pockets of people stupid enough to buy it.”
Previously, Schiff had supported the fact that Bitcoin replaced gold as a hedge asset. According to the CEO of Euro Pacific Capital, if Bitcoin becomes a new popular hedge asset, gold will face less selling pressure, leading to a potential rally.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.