Economist and cryptocurrency critic Peter Schiff recently expressed his views on the recent launch of Bitcoin (BTC) exchange-traded funds (ETFs) in the US market.
Schiff's comments came as Bitcoin price crashed shortly after the launch of 11 Bitcoin ETFs, erasing most of 2024's gains.
The media personality's perspective, which he shared on his social media account on January 13, suggests that the initial investors in these ETFs may be ruining their decisions.
Bitcoin has already fallen from just over $49,000 yesterday to just under $42,000 today. That's a decline of over 14%. It could be a long weekend for #Bitcoin bulls. If the new #BitcoinETFs fall far lower on Monday, it will be interesting to see how investors react. I doubt they will #HODL.
– Peter Schiff (@PeterSchiff) January 12, 2024
The crash in Bitcoin price, which fell from $49,000 to below $42,000 in less than 24 hours, resulted in a quick double-digit decline for its holders.
According to Anthony Scaramucci, founder of SkyBridge Capital, the price drop was largely influenced by the sell-off in Grayscale Bitcoin Trust (GBTC) shares.
Scaramucci says Grayscale ETF sales contributed to the fact that Bitcoin's decline will take a few days to disappear. Then CAVU. That's an old Navy expression, look it up. https://t.co/lWzk4sI1zd
— Anthony Scaramucci (@Scaramucci) January 12, 2024
Despite the initial setback, Bitcoin showed resilience and recovered, trading above $42,500 on major exchanges. However, the sustainability of this recovery remains uncertain.
Schiff noted that the first wave of ETF investors likely felt regret over the inability to trade ETFs over the weekend, putting them in a vulnerable position amid the market downturn.
However, his comments did not go unchallenged. A user of
We literally lasted $15,000 #Bitcoin. Do you really think that this decline will leave us reeling?
— ZacG (@zacguignard) January 12, 2024
Another user, @IncomeSharks, stated that the current Bitcoin price is 100 times higher than when Schiff first voiced criticism of the cryptocurrency.
The latest dig is not the first time Schiff has taken on Bitcoin ETF investors since the US Securities and Exchange Commission (SEC) approved the investment vehicles.
On January 10, he reached out to X to express his concerns about increasing Bitcoin speculation. He noted that the SEC’s approval of spot Bitcoin ETFs merely “opened up eleven new opportunities for speculators to place their bets.”
In addition to all of the existing ways to bet on #Bitcoin, there are now eleven additional ways for speculators to place their bets. The problem for the bulls now is what else they can bet on. It's just a shame that Bitcoin itself has no real use in the real world, like #Gold.
– Peter Schiff (@PeterSchiff) January 10, 2024
The larger impact of the Bitcoin ETF launch is currently a hotly debated topic among experts. Some, like BitMEX founder Arthur Hayes, fear that Bitcoin could begin to reflect a traditional financial asset and thereby lose some of its unique appeal.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.