As a seasoned crypto investor with a few years under my belt, I’ve grown accustomed to the ebb and flow of market sentiment. Peter Schiff’s recent criticism of institutional demand for Bitcoin is nothing new, but it does strike a nerve given the current market conditions.
Expert response:
Peter Schiff Mocks Institutional Demand
Peter Schiff pointed out on Twitter on July 6 that the recent Bitcoin sell-off brought attention to discussions surrounding increasing institutional interest in the cryptocurrency. He cast doubt on the prevailing market narrative, referencing the Mt. Gox payout as a potential factor behind the market’s shock.
“Critics of Bitcoin argue that its recent slump can be attributed to sales linked to the Mt. Gox repayment process. However, there’s more to it than that. The selloff underscores the doubt surrounding institutional demand for Bitcoin. If such demand truly existed, investors would eagerly purchase the Mt. Gox Bitcoins off-market.”
The cryptocurrency market reached new lows not seen in months, causing the total market capitalization to dip beneath $2.07 trillion, resulting in approximately $170 billion being wiped out. The downturn was largely attributed to two significant events: first, the announcement of a nearly $9 billion payment to Mt Gox creditors; and second, the German government’s sale of seized Bitcoin, which triggered a sharp price decrease. These developments, combined with broader economic factors, fueled a bearish response among investors.
Institutions To Step Up?
Based on Peter Schiff’s perspective, had there been significant institutional interest in Bitcoin, companies would have secured the assets to avoid market disruption. However, this didn’t occur as the assets ended up on centralized exchanges among other reasons. Nevertheless, cryptocurrency enthusiasts emphasized the increasing institutional demand. In 2021, the approval of Bitcoin spot ETFs propelled the asset to a new peak above $73,000 and attracted involvement from numerous institutions. As a consequence, these institutions began investigating Ethereum ETFs and filed new applications for Solana.
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2024-07-06 22:05