Arthur Hayes and Peter Schiff Issue Warning of Potential Crypto Crash Following Bitcoin ETF Approvals

Arthur Hayes and Peter Schiff Predict a Crash After Spot Bitcoin ETF Approval

Arthur Hayes and Peter Schiff have both warned the crypto community that the approval of spot Bitcoin ETFs may result in a significant crash for the cryptocurrency markets. Hayes, the co-founder of BitMEX, believes that Bitcoin will correct by at least 20% to 30% post the launch of Bitcoin ETFs, and he has announced that he won’t be buying Bitcoin until March.

Hayes said during his blog post that there’s a possibility of a 30% to 40% correction due to a dollar liquidity rug pull, which could take Bitcoin back to $42,000. While he called a 20% to 30% crash healthy, he still recommended waiting until the decision dates have passed.

Schiff, who is chief economist and global strategist at Euro Pacific Asset Management, warned investors to be cautious about the approval of spot Bitcoin ETFs, reminding people that the promise of a Bitcoin ETF has been supporting the price for years and that if the highly anticipated institutional demand does not show up, the market may experience a significant drop.

Investors Respond to Schiff’s Concerns

Responding to Schiff’s bearish prediction, some users reminded him that the approval of spot Bitcoin ETFs may actually add positive momentum to the cryptocurrency market, comparing it to the demand for gold not being hampered by gold ETFs. Nonetheless, Schiff remains skeptical and has warned that if the institutional demand for spot Bitcoin ETFs is non-existent, it could lead to a significant decline in Bitcoin’s value.

Hot Take: Will a Spot Bitcoin ETF Approval Lead to a Crypto Crash?

While the approval of spot Bitcoin ETFs is eagerly anticipated, the warnings issued by Hayes and Schiff indicate that this move may carry significant risks, and it’s essential for you to plan your investment strategy accordingly if this development were to materialize. Be vigilant and take their concerns into account while considering your own investment decisions. Token approval doesn’t always guarantee the anticipated results, so make sure you are prepared to navigate what may lie ahead in the crypto market.