The price of Bitcoin suffers another fall due to the correction made on the United States equity market and which might cause disaster for other Altcoins if the fall continues.
Following a severe crash in early May and throughout April 2022, Bitcoin (BTC) gave investors some hope last week by consolidating around $30,000 levels. However, following a strong correction in the US equity market on Wednesday, May 18, the Bitcoin price fell below $29,000 once more.
Peter Schiff, a well-known Bitcoin critic, describes this as a classic bull trap for investors. Schiff mentions in one of his recent Twitter posts:
Many analysts have speculated that Bitcoin could serve as an inflation hedge in the long run, but Schiff believes that this is not the case. “Rising #food and #gasoline prices will put more downward pressure on #Bitcoin prices,” he says. Because grocers and gas stations will not exchange their food or fuel for the coin. So, if Bitcoin #HODLers want to eat and drive, they’ll soon have to sell their precious sats to do so!”
More Concerns For Bitcoin
We can’t deny that Bitcoin has been closely tracking Wall Street’s Nasdaq 100 index. So, if the Nasdaq continues to fall, which is more likely, the coin may be in trouble. According to crypto analyst Lark Davis, Nasdaq has already corrected 28 percent from its peak.
On Tuesday, it plummeted below its critical support level of 12,100. As a result, both Wall Street and Bitcoin may face more pain in the future.
If the price falls below $28,000, the next support level will be at $22,000. This implies that altcoins may face additional difficulties in the future.
Rich Dad Poor Dad author Robert Kiyosaki says he still believes in Bitcoin in the long run. He tweeted: