Prominent financial commentator Peter Schiff has joked that there will be a boost in U.S. manufacturing since a lot of cryptocurrency millionaires “are going to need jobs.”
The facetious comment comes amid a brutal Bitcoin price crash. Earlier this Tuesday, the leading cryptocurrency plunged to as low as $76,600 on the Bitstamp exchange. It is currency trading close to $80,000 after paring some losses.
The ruthless crypto sell-off has coincided with another stock market rout. The Nasdaq 100 has logged its worst day since 2022, plunging by nearly 4%. Strategy (MSTR) and Tesla (TSLA) shares were down 16.68% and 15.43%, respectively. The massive crash was mainly driven by growing recession fears.
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Now that Bitcoin has suffered a 30% correction, Schiff claims that it is “hard” to see the rationale for the U.S. government holding the leading cryptocurrency as a reserve asset. He predicted that the rationale would be “even harder” if the cryptocurrency ended up crashing by 50%.
“If the price can drop over 30% in less than two months without anything really happening, how can that be a store of anything,” Schiff said.
The financial commentator predicted that Strategy (MSTR) would be trading at a discount.
A “normal” correction
While cryptocurrency detractors are eager to gloat over the massive price drop, former BitMEX CEO Arthur Hayes claims that such a correction is “normal” for a bull market.
Hayes believes that one should buy the dip as soon as central banks ramp up monetary easing.