More Pain For Altcoins on Horizon As Bitcoin Price Drops Below $30K!

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Bitcoin has had a rough start with April and May which saw a downfall towards $26,000. But the flagship currency did show a sign of recovery after it reclaimed $30,000.

However, yesterday on May 19, 2022, the Bitcoin price retraced back below $30,000 after there was a correction in the U.S equity market. 

Peter Schiff, the well-known Bitcoin critic, refers to this as a bull trap for investors. In a recent tweet, Schiff claims that he is surprised to see Bitcoin holding up so well. He adds up saying it’s very rare that the market gives such a time to buy at the bottom.

Hence, he says this is more like a bull trap where the market is attracting more and more buyers before the next leg is down. 

Many analysts are still of the opinion that in the long term, Bitcoin will serve as an inflation hedge, but this doesn’t look to be true as per Peter Schiff. Peter explains that the increasing price of food and gasoline will put more pressure on Bitcoin prices pulling it more downward.

According to him, this will happen because grocers and gas stations will not trade their food or fuel for Bitcoin. Hence, he says if Bitcoin holders want to eat or drive fast they will be forced to sell their holdings to afford the price.

More Equity = More Pain

On the other hand, the fact that Bitcoin follows the Nasdaq 100 index very closely cannot be ignored. As per Lark Davis, the Nasdaq has already undergone a 28% correction from the north.

On Tuesday, 17th of May, when the Nasdaq plunged below its crucial support of 12,199. Hence Lark Davis claims we see more pain in the future days on Wall Street as well as Bitcoin. 

If the Bitcoin price falls below $28,000, then the next support level will be $22,000 pointing to Altcoin more pain.