Flagship cryptocurrency, Bitcoin, showed signs of recovery after reversing from a $29k low to above $30k. However, American stock broker and CEO of Euro Pacific Capital Inc. Peter Schiff, is mostly pessimistic about the crypto asset after announcing via a tweet earlier on Wednesday that Bitcoin was proving to be ‘non-correlated’ with other risk assets. Overall, the stock broker has predicted more downward swing for Bitcoin.
Bitcoin has been experiencing a series of fluctuations for the past two months and since the market came crashing down in mid-May. During the crash, Bitcoin retraced by over 50% from an all-time high of $64,000 to a low of $35k, not without pulling other cryptocurrencies down with it due to its dominance. Second-largest crypto by market cap, Ethereum also careened down from a peak of almost $5k to a low of $2k.
Amid the market fluctuations, Bitcoin grazed a bottom of $28k last month, instigating speculations of a further swing downwards among crypto enthusiasts and market observers. While few of these observers consider the $28k support zone as the last bottom before the bulls take over, a handful of others predicted a further fall to $25k. Peter Schiff seems to fall into the latter category.
Schiff’s Claims in Line with Predictions by Experts at JPMorgan
Schiff argued that the $30k region for Bitcoin has now turned to a resistance zone. He added that a correction from that zone is not out of sight. In his tweet, the stock brother said while other risk assets recovered after selling off on Monday, Bitcoin rebelled and indicated a ‘non-correlated’ stance. In fact, he declared that Bitcoin continued selling off the following day.
While one may be quick to rubbish Schiff’s position, observing the events that have occurred within this week may leave one with no choice than to agree with him. A major highlight of this week’s events is Grayscale’s Bitcoin Trust unlocking, the largest of which occurred on July 19. Before the unlocking, experts at JPMorgan had predicted a bottom of $25k for Bitcoin if a selling pressure follows after the unlocking.
Selling Pressure Responsible For $29k Correction
With the $GBTC unlocking now behind, a selling pressure may have occurred as predicted. As investors rushed to trade off their investments on the Trust, it may likely have contributed to the correction of Bitcoin to $29,285. Although the prediction of $25k has not seen the day’s light, it may be wrong to rule out that possibility as the market is still unstable. As of press time, Bitcoin is trading at $30,800, still over 60% shy of its early May ATH.
Grayscale’s Bitcoin Trust is currently the largest Bitcoin trust in the world, as it reportedly holds over 650,000BTC. The asset management firm also has other crypto trusts and has proposed to convert its Bitcoin Trust to an ETF, for which it partnered with asset servicing firm, BNY Mellon. Meanwhile, Grayscale announced on Tuesday that it has created a DeFi Trust for institutional investors.