As the coronavirus continues to spread rapidly, the markets have experienced massive meltdowns never seen before. Even the haven assets are not spared in this turmoil. Bitcoin may end up in a race with gold to plunge to the $1,000 mark according to one analyst who put support below $1,400 for the precious stone.
In a March 16 tweet, a renowned trader by the name Peter Brandt warned that if the nearby levels set around $1,350 failed to hold, gold might fall to within an inch of three figures.
Nothing can save Bitcoin, Brandt says
In a recent publication, he wrote:
“There should be support for Gold prices under $1400. If the price drops below $1300, then $1,050 here we come.”
Gold seemed to be a haven, but this March, it has copied Bitcoin seeing significant falls with the coronavirus panic spilling over from the stocks into many other facets of the fiat economy. In the last seven days, the highs of around $1,680 have receded to languish approximately $1,480, representing a loss of about 12%.
Peter also reiterated a past warning that Bitcoin was also destined to implode to $1,000 unless a ‘pie in the sky’ chart setup saved the crypto.
Although he never mentioned what form any of such events would take, his tone remained firmly risk-off on Bitcoin and worse for almost all the other cryptos. When asked his opinion about the potential that stablecoin Tether (USDT) could buy up the Bitcoin supply at such levels, he said:
“Tether is nothing but a phony fiat currency.”
The economy has jumped off the Empire State Building
The gold proponents also seem to no longer trust the market’s strength. Peter Schiff is famous for his dislike of Bitcoin. He likened the current situation to jumping off a skyscraper. He warned in his latest edition of Peter Schiff Podcast:
“It’s like we’ve already jumped off the top of the building, off the top of the Empire State Building. There’s no way to change our minds now. We’re going to hit that pavement. I can’t see any way we can avoid that. All we can do is brace for impact ourselves.”
It is a fact that coronavirus has caught most industry figures off-guard. Brandt said in January that he never foresaw Bitcoin dropping to even $6,000.