The U.S market has been recording unprecedented drops. They have been blamed on the Coronavirus outbreak. But is this the full story? Bitcoin critic Peter Schiff disagrees with the popular opinion. He thinks that investors are using the Coronavirus epidemic as an excuse to sell the market.
Peter Schiff Blames U.S-China Trade Deal
In the last month, the crypto market has been pumping. A number of coins including Bitcoin, Litecoin, and Ethereum are up by more than 20%. Popular opinion suggests that the Coronavirus is to blame. The virus which has hit hardest in China continues to rock the economic world. The U.S market was hit last week to reach the previous year’s lows. The Chinese markets opened today 8% down despite the PBOC pumping $174B. The drop was the worst drop since 2008. These economic woes have seen the crypto market come out victorious as investors seek haven.
In a tweet, Schiff has expressed his views on the current downtrend in the market.
Coronavirus is the excuse that investors are using to sell the market. But if it wasn't the coronavirus, they would have found another excuse. https://t.co/rTGJ6MUs1X
— Peter Schiff (@PeterSchiff) February 3, 2020
He has further backed his views stating in a post:
“It is the excuse that investors are using to sell the market. But if it wasn’t the coronavirus, they would have found another excuse.”
This he continues to explain is because the market was vulnerable following the U.S-China trade deal. H explains that stocks were overbought in anticipation of a trade deal and a sell-off was imminent.
“Maybe it didn’t sell-off on the day of the news, or the very next day, but it didn’t take very long for the markets to come up with a reason to do what they were going to do anyway, which is going down.”
What Does This Mean For The Crypto Market
This view could well rock the rally in the crypto market. The crypto market has spread the narrative that the bad performance in the markets could be sending investors to the crypto market. If Schiff is right, we could be staring at a classic bull trap. Prices are pumped by a handful of investors who inevitably dump and take their profit.
Despite what triggered the market plummet in China and the U.S, Central banks are keen to bail the economies out and continue to print out money.
— PlanB (@100trillionUSD) February 2, 2020
Bitcoin has been showing some bullish technical indicators for the last couple of weeks. This is expected to continue in the weeks to come with the $9,500 resistance now the only obstacle to seeing prices hit the moon.
The Blockroots Alpha trend just printed a "long" signal this week on the $BTC 3D chart
The last two times "long" signaled:
– Sept '16 prior to the Bitcoin ATH
– March 26, days before the $1000 candle and run to $13ks#Bitcoin
— Josh Rager ? (@Josh_Rager) February 2, 2020