Peter Schiff Expects Spot Bitcoin ETFs To Hit New Lows In Broader Market Decline

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As a seasoned researcher with decades of experience in economics and finance, I have witnessed countless market fluctuations and trends that have shaped our financial landscape. Peter Schiff’s latest insights on Bitcoin and its ETFs are not surprising, given his long-standing skepticism towards digital currencies. However, his predictions should be taken with a grain of salt, as they are rooted in his personal views and life experiences.

With Bitcoin‘s price plummeting significantly, renowned economist Peter Schiff – known for his support of gold – has shared his views on this decline. He has cautioned about the potential impact on Spot Bitcoin Exchange-Traded Funds (ETFs), suggesting they might reach even lower levels in the near future. This bears a grim outlook amidst a critical phase for the cryptocurrency market, as it navigates through financial market fluctuations and economic uncertainty.

Spot Bitcoin ETF Investors Displays Resilience Amid Market Instability

After the recent fall observed in Bitcoin (BTC) and the broader market, Peter Schiff, who is known for his skepticism towards cryptocurrencies, has voiced strong criticism against digital assets. He suggests that the value of investments in Bitcoin spot ETFs could potentially decrease alongside the price as well.

Before the market opened on Monday, Schiff pointed out that once Ethereum and Bitcoin ETFs start trading, CNBC won’t be able to understate the magnitude of the ongoing decline. This is due to the fact that the losses incurred over the weekend will already be incorporated into those decreases.

If investors in ETFs linked to a specific spot (or physical) market decide to sell instead of buy when trading resumes, Schiff anticipates that this mass selling could overwhelm the spot markets with excess supply. Yet, just hours after the spot market had closed, the gold advocate expressed optimism among investors, suggesting that the recent drop in prices was insufficient to unsettle them significantly.

Despite remaining undeterred by Bitcoin’s latest decline, Schiff predicts that the resolve of ETF investors in the spot market will be challenged shortly. He believes that a period of capitulation is necessary for the temporary bottom to establish itself.

The post read:

Today’s crypto crash wasn’t big enough to shake the confidence of ETF investors. However, their resolve will be tested soon. Capitulation is needed to form a short-term bottom. 

If the size of yesterday’s drop didn’t dampen investor enthusiasm for spot Bitcoin ETFs, a financial expert asserts that if Bitcoin falls below $38,000, it could trigger a decrease in these funds, possibly pushing them to reach even lower levels.

In response to a comment, Schiff forecasted that Bitcoin could reach $20,000. However, he clarified that this price of $38,000 is more likely a significant point where large sell-offs occur, not a temporary low point. Therefore, he anticipates that Bitcoin may fall below $20,000 before finding its short-term bottom.

Recent Crash Proves BTC’s Unreliability As A Strategist Reserve Asset

Known for his critique against Bitcoin (BTC), Peter Schiff recently expressed his disapproval towards the suggestion of using it as a strategic reserve asset. Referring to the recent market crash over the weekend, Schiff argued that such incidents demonstrate why major governments and central banks would never acknowledge BTC as a reserve currency.

The economist doubts that Bitcoin can ever become a secure asset for storage, primarily because of its extreme price fluctuations. This skepticism arises from the fact that a reliable store-of-value should be readily convertible to other assets when needed and not suffer losses greater than the assets it safeguards.

Peter Schiff Expects Spot Bitcoin ETFs To Hit New Lows In Broader Market Decline

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2024-08-06 19:12