Cryptocurrency critic Peter Schiff has warned that the stage is already set for a cryptocurrency crash. 

The gold bug pointed to the fact that the price of Ethereum, the second-largest cryptocurrency, plunged by 8% over the past 24 hours. 

As reported by U.Today, the massive price drop can be largely attributed to massive outflows recorded by Grayscale's ETHE as well as the recent big tech sell-off. The tech-heavy Nasdaq-100 index had its worst performance in roughly 18 months. 

Bitcoin, the leading cryptocurrency, is also down 3% despite recording healthy ETF inflows. 

The recent market crash coincided with the start of the much-hyped Bitcoin conference in Nashville, Tennessee. 

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Schiff also did not ignore the fact that gold was also not immune to the stock market sell-off, plunging by almost 2%. According to the financial commentator, the markets are currently pricing in "a hard landing."

Notably, safe haven currencies such as the Swiss franc and the Japanese yen are on the rise as well. Schiff has predicted that the next recession might start with a stock market crash if the Federal Reserve refrains from cutting interest rates. 

Traders are virtually certain that the Fed is going to cut rates in September. As reported by U.Today, the June inflation numbers made market participants hopeful that the Fed might go for two rate cuts this year. 

"The key is will the #Fed allow that to happen, or will it delivery the one thing that can stop a full blown stock market crash, including a financial crisis and recession before the election?" Schiff asked.