According to the famous digital assets skeptic, the altcoin market might “pop” in one day
In his recent tweet, chairman of SchiffGold and famous Bitcoin skeptic, Peter Schiff, has expressed his feelings about the current state of the cryptocurrency industry, Bitcoin, and the altcoin market in general. He said that the current supply is significantly higher than the existing demand on the market. Such conditions might lead to the rapid price drop of alternative coins andof the industry as a whole.
Schiff stated that, when supply overwhelms demand, prices might implode almost overnight, referring to the famous one-day 15-20% correction that was presented on the market in May. During the recent correction on the market, both Bitcoin and altcoins faced a major 5-10% correction.
There are now over 12,000 crypto tokens, 84 of which currently have market caps above $1 billion. There is nothing special about #Bitcoin. The supply of altcoins will keep growing until the crypto bubble pops. Supply will overwhelm demand and prices will implode almost overnight.— Peter Schiff (@PeterSchiff) September 21, 2021
Various market analysts and experts noted that the cryptocurrency market’s correction might be tied to the increase of global risks associated with potential default that Chinese developer Evergrande may face.
At press time, Bitcoin is trading in the range of $43,000 after correcting for 8.5% in one day. After the strong plunge down, Bitcoin bounced back from $40,000 and is now not moving in either direction and forming a candlestick pattern known as a “bullish hammer” that usually appears at the bottom of downtrend movement.
In the same thread, Schiff answered one of the commentators talking about Bitcoin’s potential of removing costs and latency from financial systems.
The only thing that Bitcoin will remove is money from the pockets of people foolish enough to buy it.
Previously, Schiff supported the fact that Bitcoin is replacing gold as a hedge asset. According to the CEO of Euro Pacific Capital, if Bitcoin becomes a new popular hedge asset, gold will have less selling pressure, which will lead to a potential rally.
Jerome Powell’s reappointment, a setback for cryptocurrency – Mike Novogratz
- Novogratz says Powell second term is setback for crypto.
- Galaxy Investment Partners CEO says Powell does not understand US economy.
- Novogratz predict bullish future for crypto with institutional investors.
Ex-hedge fund manager and CEO Galaxy Investment Partners, Mike Novogratz, has frowned at the reappointment of Jerome Powell as chairman Federal Reserve.
Novogratz is of the opinion that a second tenure for Jerome Powell would slow down cryptocurrency markets, the Nasdaq, and “all assets.” He said this as a Bitcoiner and not an investor noting that Powell could be detrimental to the markets’ growth.
He said during a CNBC interview that, in his opinion, Powell has failed to understand the political and economic reality of the United States, which reflects on the market.
Novogratz explains realities of US economy
The CEO said cryptoers are getting bearish on Jerome Powell’s appointment following the change in the Marco story.
He noted that inflations are high in bad ways in the US, questioning what the fed would do.
“We have inflation showing up, you know, in pretty bad ways in the US So, we can see, is the Fed going to have to move a little faster … That would slow all assets down. It would slow the Nasdaq down. It would slow crypto down if we have to start raising rates much faster than we thought.
He noted that the US is experiencing its highest inflation in 30 years. At 6.2 percent annually, the consequences are already starting to ripple through the rest of the world, with 39 of the 46 world’s largest economies showing higher inflation year-on-year.
According to Novogratz, with Powell being tipped for a second term, he can be more aggressive with his policies without needing to measure his actions so as not to put his job at risk.
Jerome Powell aside, Novogratz focused on cryptocurrency
The CEO hinted that he is all about the crypto space predicting a bullish future for the currency in the near future.
As CEO of Galaxy Digital, he has to study market trends and expectations constantly. He assures that the more distant future looks promising for cryptocurrencies after the short-term ups and downs.
He also states that more and more institutional investors continue to enter the crypto space a catalyst for growth in the crypto space.
Jerome Powell Could Slow Down The Cryptocurrency Industry, Mike Novogratz Says
Mike Novogratz is not happy with U.S. President Joe Biden’s decision to pick Jerome Powell to chair the Fed for a second term. And he’s speaking not as a Bitcoiner but as an overall investor: He believes Powell could be detrimental to the markets’ growth.
In an interview for CNBC this week, Novogratz hinted that from his point of view, Jerome Powell had failed to understand the political and economic reality of the United States and that the markets have a similar view, being pessimistic about his tenure.
Careful With Jerome Powell
Speaking about the cryptocurrency market, Mike Novogratz said that “people are getting pretty bearish” on crypto after Jerom Powell’s appointment, especially following the changes in the “macro story.”
“We have inflation showing up, you know, in pretty bad ways in the U.S. So, we can see, is the Fed going to have to move a little faster … That would slow all assets down. It would slow the Nasdaq down. It would slow crypto down if we have to start raising rates much faster than we thought.
The United States is experiencing its highest inflation in 30 years. At 6.2% annually, the consequences are already starting to ripple through the rest of the world, with 39 of the 46 world’s largest economies showing higher inflation year-on-year.
Mike Novogratz argues that now that Powell has the confidence of a new mandate, he can be more aggressive with his policies without needing to measure his actions so as not to put his job at risk. And Jerome Powell’s thinking so far seems to favor an expansionary monetary policy.
Mike Novogratz Remains Focused on the Cryptocurrency Industry
However, Mike Novogratz is a cryptocurrency lover and doesn’t plan to stop being one. As CEO of Galaxy Digital, he has to constantly study market trends and expectations. He assures that the more distant future looks promising for cryptocurrencies after the short-term ups and downs.
The crypto ecosystem is growing, and more and more institutional investors are entering the game, spurring the industry’s growth.
“The amount of institutions Galaxy sees moving into this space is staggering. I was on the phone with one of the biggest sovereign wealth funds in the world today, and they’ve made the decision on a go-forward basis to start putting money into crypto. I’ve had the same conversations with big pension funds in the United States.”
Novogratz always argued —especially in 2017 and 2018— that institutional investors would play a major role in the rise of the cryptocurrency industry and that Bitcoin could easily reach $100K soon.
Last month, Novogratz warned that the end of the NFT rush could be approaching and advised investors to take profit and bet on Bitcoin or Ethereum.
As Cryptopotato reported on October 8, Novogratz explained that many NFTs trade for large sums of money primarily because of the emotionality of those involved and expectations – not because of proper fundamentals:
“That’s not normal, in any way, shape, or form … It seems to me like a pretty good time to at least book some profits, and fold it back into Bitcoin or Ethereum or another token.”
Finnish regulators tighten the screw on digital currency marketing
Hot on the heels of the rising cryptocurrency hype, Finnish regulators have dropped a formal notice. On Wednesday, the Finnish Financial Supervisory Authority (FSA) stated:
“Only registered virtual currency providers can market virtual currencies and related services in Finland. The marketing of virtual currencies in Finnish and in Finland is only allowed for entities registered as virtual currency providers in Finland.”
Finland is a highly economically free country, ranking 17th in the Index for Economic Freedom. However, as LocalBitcoins CEO Sebastian Sonntag told Cointelegraph upon receiving the company’s FSA license in 2019:
“The controls in the financial sector are of particularly high quality, and the position of the clients is well protected.”
It appears that the FSA is keen to protect investors — particularly retail — who are more likely to be influenced by marketing activities. If the 2020–2021 bull run’s meme mania is anything to go by, there will be more retail FOMO across the globe.
The FSA press release is a direct response to the rise in marketing of digital currencies and related services across Finland. Finnish media observed increasing traffic for cryptocurrency articles, while in a recent editorial by mainstream outlet the Helsinki Times, writers concluded that crypto is trendy in Finland and will hold its popularity for years to come.
Elsewhere in Finland, local crypto adoption is brewing. Finnish esports company Elisa Esports announced a partnership with cryptocurrency firm Coinmotion to bolster the Nordic esports scene.
However, the list of Supervised Entities operating in the cryptocurrency and digital currency space is still small. Fewer than 10 companies are registered, so the recent notice may be a nod toward future regulation and the evolving regulatory landscape.
Crucially, the FSA cannot advise on Finnish customers visiting foreign websites. Nor does the recent initiative affect advertising on international websites not explicitly targeted at Finnish citizens.
As a result, while regulators get to grips with the local market, Finnish crypto advocates can continue to visit international crypto websites.