The crypto market came under further pressure soon after the U.S. released its May 2022 inflation data, with CPI at 8.6%. The broader crypto market is down by another 5% today moving closer to the $1 trillion mark.
As of press time, the world’s largest cryptocurrency Bitcoin (BTC) is trading 4.37% down at a price of $27,409 with a market cap of $523 billion. As the chances of the U.S. slipping into recession grow, the selling pressure in crypto is simultaneously increasing. Bitcoin critic Peter Schiff has a strict warning for investors at this point. He predicts a major sell-off from Bitcoin HODLers in the coming weeks. Schiff said:
With food and energy prices soaring, many Bitcoin HODLers will be forced to sell to cover the cost. #Grocery stores and #gas stations don’t accept Bitcoin. When Bitcoin crashed during #Covid no one needed to sell. Consumer prices were much lower and #HODLers got stimulus checks.
Schiff Predicts Bankruptcy for Blockchain Firms
The U.S. reported higher than expected unemployment claims for the last month of May 2022. As recession firms its grip over the market, Schiff believes that “the need to sell Bitcoin will only get worse”. He wrote:
The need to sell Bitcoin to pay the bills will only get worse as the #recession deepens and many #HODLers 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.
One of the respondents on Twitter Schiff that would not one sell Gold (Schiff’s favorite asset) in case of personal financial crisis or liquidate any other asset for that sake. Schiff believes that not many Gold holders would be in such a dire position.
He adds that even if retailers sell Gold, “there will be plenty of demand, from other investors, industry, and central banks to more than pick up the slack for those who are”. However, Schiff’s belief that Bitcoin will not find enough buyers isn’t entirely true. Amid this year’s price correction, Bitcoin whales addresses with more than 10K BTC have been constantly adding more and more BTC.
#BITCOIN WHALES ARE BUYING!!!!!! 👇 pic.twitter.com/r5YubYTaMP
— Crypto Rover (@rovercrc) June 12, 2022