Peter Schiff Warns of Bitcoin’s Vulnerability to ETFs
Bitcoin (BTC) is currently leading the trend of a market downturn, and well-known Bitcoin critic Peter Schiff has expressed concerns about the potential for a catastrophic crash due to spot exchange-traded funds (ETFs). According to Schiff, as more of the flagship decentralized finance (DeFi) asset enters ETFs, it becomes increasingly vulnerable to such a crash. He believes that ETF buyers are more likely traders than true believers in Bitcoin’s technology, meaning they will go along for the ride when the price is increasing but bail out once it enters a bear market.
Peter Schiff’s Twitter Clash
In response to comments from crypto enthusiasts who argue that crashes are normal in the industry and occur every four years, Schiff acknowledged this fact. However, he added that this time it is different because there are now many Bitcoin coming out of ETFs. He emphasized that these ETFs will result in market orders without limits, which must be filled with actual dollars and not Tether (USDT) purchases. Schiff also pointed out that Bitcoin has already fallen 15% from its peak price without any outflows from the new Bitcoin ETFs.
When one commenter challenged his views by asking what would happen to the gold price if gold ETFs started selling, Schiff argued that the gold price would keep rising anyway because gold ETFs have had outflows all year. He believes that Bitcoin needs ETF buying and if the ETFs start selling, Bitcoin will crash because there is not enough buying in the spot market to offset the sell volume.
Peter Schiff’s Views on Bitcoin
This is not the first time Schiff has clashed with members of the crypto community. Earlier this year, he stated that Bitcoin could reach $10 million by 2031, but only if the US dollar became worthless. He has also criticized Bitcoin as part of a speculative and gambling trend, attributing its recent rally to the hype surrounding the launch of several Bitcoin ETFs.
As of now, Bitcoin is trading at $63,283, experiencing a 7.41% decrease in the day and a 12.76% decrease on its weekly chart. However, it still maintains a 21.23% gain over the previous month.
Hot Take: Exercise Caution and Conduct Research
Peter Schiff’s warnings about Bitcoin’s vulnerability to ETFs may or may not be accurate. Regardless of one’s opinion on the matter, it is always important to exercise caution when investing in crypto assets or precious metals like gold. Detailed research should be conducted before making any investment decisions.
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