Anika Begay
As Bitcoin continues to experience a significant price decline, renowned economist and gold advocate Peter Schiff has expressed his views on the recent downtrend, warning about its impact on Spot Bitcoin Exchange-Traded Funds (ETFs), while predict products could reach new lows in the coming days. This negative outlook coincides with a crucial moment in the history of the cryptocurrency market, as it maneuvers financial market volatility and economic unpredictability.
Spot Bitcoin ETF Investors Show Resilience Amid Market Volatility
Following the recent decline seen around BTC and the overall market, Peter SchiffA cryptocurrency critic has voiced his scathing criticism of the digital asset, claiming that investments in spot BTC ETFs could fall along with the price.
Before the market opened on Monday, Schiff noted that after the Ethereal and Bitcoin exchange-traded funds (ETFs) begin trading, CNBC will not be able to downplay the severity of the current decline. That’s because Saturday’s losses will be included in those declines.
If spot ETF investors choose to sell rather than buy when trading begins, Schiff believes that liquidation could flood spot markets. However, hours after the spot market closed, the gold advocate cited strong sentiment among investors, noting that yesterday’s plunge was not big enough to shock them.
Even though spot ETF investors were unmoved The recent drop in BitcoinSchiff argues that their resolve will soon be tested and that forming the short-term fund will require capitulation.
The post read:
Today’s cryptocurrency crash wasn’t big enough to shake the confidence of ETF investors. However, their resolve will soon be tested. Capitulation is needed to form a short-term fund.
Given that the extent of yesterday’s decline was unable to dampen investor optimism in the BTC Spot ETFsThe economist believes that Bitcoin’s fall below $38,000 could solve the problem, predicting that funds will hit new lows when that happens.
He also predicted that Bitcoin will hit $20,000, in response to a commentator. According to Schiff, the aforementioned $38,000 is the price break that triggers major liquidations, not the short-term low. Therefore, he expects BTC to drop below $20,000 for the short-term low.
The recent crash demonstrates the unreliability of BTC as a strategic reserve asset
Peter Schiff, known for his criticism of BTC, has also slammed the idea of making digital currency a strategic reserve asset. Focusing on the weekend crash, Schiff said the event is proof of why major governments and central banks will never accept BTC as a reserve asset.
The economist’s belief that BTC will never be accepted as a reserve asset is due to the high volatility of the digital currency. This is because a reserve asset must be easily sold when needed and cannot lose more value than the assets it is supposed to protect.
Featured image from Adobe Stock, chart from Tradingview.com
