While BTC approaches $35,000, driven by expectations of validation of Blackrock’s Bitcoin Spot ETF by the SEC, Peter Schiff, eminent economist, is sounding the alarm. He suggests a speculative frenzy could lead to a rout for many investors.
Peter Schiff warns against the speculative craze surrounding Bitcoin
Economist Peter Schiff, known for his harsh criticism of Bitcoin, is sounding the alarm on the excitement around Bitcoin Spot ETFs. In his opinion, many investors are flocking to the queen of cryptos in the hope of taking advantage of the arrival of new investors following the approval of ETFs.
However, Schiff warns that the scenario could be reversed. If current BTC holders decide to sell massively, taking advantage of this euphoria, a sudden drop in prices could occur.
“ Speculators are buying Bitcoin now because they believe other speculators are waiting to buy a Bitcoin ETF. They will soon discover that there are many more speculators waiting to sell than waiting to buy “Schiff said.
Contrary to this view, some members of the crypto community perceive a positive impact of ETFs on Bitcoin, such as Jeysuhnwhich estimates that the majority of investors have not yet entered the market.
Schiff’s comments set the crypto sphere ablaze, making the future of Bitcoin, after the eventual approval of ETFs, more unpredictable than ever.
Lawyer John E Deaton’s optimistic ETF prediction
Unlike Schiff, lawyer John E Deaton is significantly more optimistic. Passionate about blockchain, he predicts approval of Bitcoin Spot ETFs by the end of 2023, or early 2024 at the latest.
Deaton speculates that the SEC, rather than seeking approval, is currently gathering more evidence to possibly justify a rejection of Bitcoin ETFs.
Currently, the signs seem favorable for bitcoin. The prospect of the introduction of Blackrock’s iShares Bitcoin Trust has undeniably influenced the price increase.
Several sources suggest that the firm is close to getting the green light to launch its own Bitcoin ETF. The recent landing of a CUSIP number by iShares, a BlackRock entity, is seen by analysts as a precursor to a possible intrusion into the market, hence the ambient euphoria.
In the short term, the excitement around Bitcoin ETFs appears to be a significant lever for crypto. At the time of writing, BTC is trading around $34,424.
The possible approval of Bitcoin ETFs by the SEC is a hot topic, generating both hope and skepticism. Faced with this current trend, the market could continue to rise or, conversely, experience a significant correction.
Regardless, Bitcoin is positioning itself as a centerpiece of today’s digital economy. In the long term, it presents itself as an alternative currency, the evolution of which deserves constant monitoring.
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