Bitcoin Price Could Experience a Drawdown Before ETF Launch, Says Peter Schiff
Renowned gold bug Peter Schiff predicts that Bitcoin (BTC) will most likely undergo a significant price drawdown before the launch of a key date for institutional investors. Schiff, the chief economist and global strategist at Euro Pacific Asset Management, has been a vocal critic of Bitcoin for years, arguing that its value will eventually return to zero. He believes that the recent price gains of BTC are unsustainable.
Schiff’s attention has shifted to the launch of the United States’ first Bitcoin spot price exchange-traded fund (ETF). Although the approval is expected in early 2024, rumors of a potential green light in November have fueled last week’s surge in BTC price, pushing it past $37,000. While some analysts anticipate a “sell the news” event, where investors reduce their exposure once the ETF is approved, Schiff suggests that a BTC price comedown might occur even before the launch.
In a recent survey conducted by Schiff, participants were given two scenarios for a Bitcoin crash: before and after the ETF launch. However, the majority of respondents (68% of nearly 25,000 votes) chose the option “Buy and HODL till the moon,” indicating their faith in Bitcoin’s long-term potential.
Despite the survey results, Schiff remains steadfast in his belief. He argues, “Based on the results, my guess is that Bitcoin crashes before the ETF launch. That’s why the people who bought the rumor won’t actually profit if they wait for the fact to sell.”
While Schiff continues to voice his skepticism, the sentiment in the institutional sphere is becoming more positive as the ETF debate leans towards Bitcoin’s favor. AllianceBernstein, an asset management firm, predicts a peak of $150,000 for Bitcoin in the next cycle. They believe that the ETF approval news is gradually being priced in and that the market may experience disappointment in the short run before witnessing significant flows.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions should be made after conducting thorough research and considering the associated risks.