Once a skeptic, always a skeptic! While Bitcoin had just created a new annual high at $38,000, Peter Schiff predicted a crash. But what will be the reason for this potential decline in the queen of cryptos? The economist explains on X (Twitter) that this has something to do with Spot Bitcoin ETFs.
“ Prepare for a crash » on Bitcoin
In a bullish phase for 9 weeks, The price of Bitcoin has just reached a new annual high. The queen of cryptos has in fact recorded a performance of +50% since September 11. It thus crosses the $38,000 mark for the first time since May 2022.
Despite this rise which has aroused the interest of crypto investors, economist Peter Schiff remains skeptical.
The economist suggests that Bitcoin price reaches $38,000 due to speculative interest related to new Spot Bitcoin ETFs. He believes that once these ETFs are launched, speculators who wanted to invest will have already done so. When some of them sell to make a profit, there won’t be enough buyers to support the market. This could thus lead to a drop in prices, hence the term “ Prepare for a crash“ .
These arguments seem logical in substance. Moreover, he has already warned about the fatal trap for investors regarding the speculative craze around Bitcoin ETFs. However, if the SEC approves Bitcoin ETFs, the entry of heavyweights such as BlackRock, which manages a fortune of $30 trillion, into the crypto market should not be underestimated.
The economist is losing credibility within the crypto community
Under Peter Schiff’s tweet, most of the responses go against his point of view.
“ Pete, you are always wrong about Bitcoin. This time, refrain.“
“ You’ll say that up to $500,000“
“ Peter, what happened to gold when these ETFs were approved?? 400% increase I believe“
Reactions to his comments suggest that this renowned economist is gradually losing credibility within the crypto community. However, even if that is the case, his arguments could be logical and true. It is plausible that the current rise in BTC will undergo a further correction. Moreover, the main upcoming catalysts for the ‘real’ Bitcoin bull-run are the approval of ETFs and the next Halving planned for 2024.
Nevertheless, the absence of significant resistance on the price could be considered a positive aspect for Bitcoin (BTC).
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