Peter Schiff sees huge crash coming for Bitcoin and the rest of the market

Noted gold enthusiast and Bitcoin critic Peter Schiff predicts a crash of the traditional stock market and the crypto market.

Peter Schiff, a well-known critic of Bitcoin and altcoins, is convinced that both the stock and crypto markets are headed for recession. In his warning, he points to the sharp drop in Ethereum, whose share price had fallen more than eight percent yesterday. The Bitcoin share price fell more than three percent during the same period.

The sharp losses in the crypto market are due to significant outflows at the Grayscale Ethereum Trust ETF (ETHE) and the poor performance of the NASDAQ 100 Index, which reflects mostly tech stocks. Schiff's favorite asset, gold, also underwent a two percent price decline. In contrast, according to the investor, foreign currencies such as the Swiss franc and the Japanese yen are on the rise.

According to Schiff, a recession could be coming, starting with a collapse of the stock market. This would then also cause the prices of cryptocurrencies to fall sharply. Therefore, he hopes for an interest rate cut by the U.S. central bank Fed.

The likelihood of an interest rate cut by the Fed during the FOMC meeting mid-September is very large, as inflation rates in the U.S. have been stable for several months. Interest rate cuts could allow cryptocurrency prices to rise significantly again in the medium and long term.