The FTX-Alameda saga is dragging the crypto markets down making Bitcoin plummet to $16,000 levels. BTC is now at its November 2020 lows after shedding all gains that it generated during the bull run in 2021. Bitcoin reached an all-time high of $69,044 last year and erased all profits in 2022. The markets are in tumultuous conditions and investors fear that Bitcoin could slip further reaching new yearly lows.
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Bitcoin’s Path During the Upcoming Recession
Gold and commodity strategist Peter Schiff predicted that the crypto winter would remain for a longer time than previously expected. Schiff has predicted that long-term BTC holders will be subjected to harder tests when the markets crumble.
According to Schiff, the FTX collapse was the first nail in the coffin and many more exchanges would soon go bust. He predicts that a handful of blockchain companies will shut shop making crypto employees lose their jobs.
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He added, that if the circumstances change for the worse, long-term Bitcoin holders with no jobs will be forced to sell their holdings at a loss to stay afloat.
“The need to sell Bitcoin to pay the bills will only get worse as the recession deepens and many holders lose their jobs. Especially those working for soon-to-be bankrupt blockchain companies. If circumstances change, long-term buyers without paychecks will be forced to sell,” he predicted.
He also added that “The lion’s share of the selling has not even started yet. Bitcoin still has a long way to fall”.
The doomsday predictions by Schiff are not new. The veteran analyst has been ringing the warning bells of a Bitcoin collapse for many years. Read here to know an in-depth analysis about what are the chances for Bitcoin to crash to $0.
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At press time, Bitcoin was trading at $16,813 and is up 1.5% in the 24 hours day trade. BTC is down 75.6% from its all-time high of $69,044, which it reached in November 2021.