Türkçe
Español
Resurgent recession fears in the US have raised questions about Bitcoin and the overall crypto world. Following the peak of Middle East tensions yesterday, the price of Ethereum fell below $3,000 for the first time in 25 days, marking a 6% drop. Last week, ETH experienced a decline of over 8.5%, and analysts suggest the drop could deepen.
How Much Will Ethereum Be Worth?
The massive outflows following the start of spot Ethereum ETFs have continued to worry investors over the past two weeks. Renowned economist Peter Schiff noted that transactions in Ethereum ETFs have dropped by more than 15% in the past two weeks. During this period, the ETH price fell below $3,000, and Peter Schiff indicated that $2,000 is a possibility.
On Friday, spot Ethereum ETFs saw a net outflow of $54.3 million, according to data provided by Farside Investors. Grayscale’s ETF experienced an outflow of $61.4 million, while Fidelity FETH saw an inflow of $6 million. All other Ethereum ETFs in the US recorded zero inflows yesterday.
Peter Schiff, also known for his interest in gold, explained that this opportunity could potentially create a rise in gold prices in the event of a possible recession in the US.
He noted that a potential recession could lead to much larger federal budget deficits, a weaker-looking dollar, a drop in real interest rates, and much higher inflation. On the other hand, he believes the Federal Reserve could potentially engage in quantitative easing to monetize the debt, stimulate the economy, and support the markets, which could, in turn, raise gold prices.
In addition to the economist’s view, former president and current candidate Donald Trump has also stated that the $35 trillion debt could be paid off with the support of cryptocurrencies.
Altcoins Are Falling
In addition to Ethereum, the altcoin market is also experiencing corrections ranging from 5% to 10%. Although altcoin whales see the declines as a buying opportunity, the lack of a noticeable increase in trading volumes has not gone unnoticed.
CryptoQuant analyst Kate Young Ju criticized Bitcoin and stablecoins while noting a Chinese buying wall forming on the altcoin side. However, she emphasized the low trading volumes.
The analyst, who believes the current situation brings a positive outlook, stated that market conditions are suitable for research before the anticipated bull season.
