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Why crypto prices crashed – Peter Schiff

El Salvador

TL;DR Breakdown

  • Petr Schiff blames Feds for market crash.
  • Bitcoin, other altcoins dip over 10 percent.

Popular crypto critic Peter Schiff has said that the recent wild crash experienced in the crypto market is as a result of the Fed’s action toward risk assets like cryptocurrencies and some stocks.

Schiff said this on Saturday in a Twitter post as he proffered answers to the sharp decline in the crypto market. Bitcoin and all other cryptocurrencies in the top 100 coins lost a significant share of its value over the past 12 hours.

Bitcoin dropped as low as $46,000, a 12 percent drop in its value in the past 12 hours. The story is the same with Ethereum, Binance Coin, Cardano, XRPm Polkadot, Luna, Dogecoin, and other altcoins. They’ve all lost over 10 percent of their value between yesterday and now.

Peter Schiff wrote, “Risk assets like stocks & #Bitcoin are tanking simply because Powell hinted the #Fed might wrap up the taper a couple of months early and the first 1/4 point rate hike may also come a bit sooner. Imagine what would happen if the Fed was actually serious about fighting #inflation!

Jerome Powell hints at tapering crypto/stock prices

Previously, Jerome Powell hinted that tapering risk assets like cryptocurrencies and some stocks might happen sooner than the market expects.

This is in addition to the end of the quantitative easing monetary policy. The Fed chairman stated that the point rate may be increased sooner than was expected due to the inflation’s change of nature, which has become a real threat to the country’s economic safety and stability.

All of the Fed’s actions are designed to control inflation, which is currently hitting highs previously observed back in the Depression-era.

High-risk assets like Bitcoin and other digital assets are allegedly considered a store of value for those who wish to protect their funds from increased inflation.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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