Peter Schiff has this warning for BTC ETF investors
Peter Schiff, a widely known economist and advocate for gold, has issued a severe warning to traders who’re betting on Bitcoin [BTC] exchange-traded funds (ETFs).
In a latest tweet on 4th March, Schiff highlighted that relying an excessive amount of on these ETFs might result in bother sooner or later.
Remarking on the identical, he added,
“The BitcoinETFs are the tail that wags the Bitcoin canine.”
A possible crash
Regardless of Bitcoin’s latest rise to $67,000, pushed partly by pleasure over ETFs, Schiff has been very vital and has highlighted that this might all finish very badly.
He famous,
“A Bitcoin rally that lives by the ETFs will die by them as effectively.”
Schiff additional elaborated that the ETFs have boosted Bitcoin’s recognition however might additionally trigger its downfall if there’s a sudden rush to promote.
“So much much less cash will come out of the ETFs than went in. When ETF consumers flip into sellers, there received’t be sufficient demand within the spot market to permit an exit.”
What’s the media obsession?
Moreover, Schiff recently criticized the media’s obsession with Bitcoin’s surge, arguing that it distracts from gold’s important breakout above $2,100. He believes that the hype round cryptocurrency prevents traders from appreciating the worth of gold, a standard safe-haven asset.
“CNBC is so fixated on the sideshow occurring with Bitcoin and the brand new BitcoinETFs, that they haven’t even reported on right now’s $43 rise within the worth of gold, or the brand new record-high worth within the gold ETF $GLD.”
Constructing on this evaluation, Schiff anticipates that after the Bitcoin bubble bursts and the main focus shifts again to gold, retail traders will encounter considerably greater entry costs.
Regardless of Schiff’s bearish outlook serving as a cautionary story, it’s essential to acknowledge that lots of his earlier Bitcoin worth predictions have missed the mark.
