Peter Schiff Warns Of Market Instability Amid Bitcoin's Reliance On ETF Buyers: 'It Makes The Entire Mark

Benzinga

2024-06-12 08:16

Renowned economist and staunch Bitcoin (CRYPTO: BTC) Peter Schiff has expressed concerns over the stability of the digital asset’s market, attributing it to the potential influx of institutional ETF buyers.

　　Renowned economist and staunch Bitcoin BTC/USD Peter Schiffhas expressed concerns over the stability of the digital assets market, attributing it to the potential influx of institutional ETF buyers.

　　What Happened: On Tuesday, Schiff took to X, formerly Twitterto voice his skepticism about Bitcoins future. He argued that the reliance on institutional ETF buying to drive up Bitcoin prices could lead to market instability.

　　“Bitcoin pumpers are counting on institutional ETF buying to drive higher prices. But this makes the entire market even more unstable, as all ETF buyers are future sellers,” Schiff wrote.

　　He even contrasted the ETF buyers with spot buyers, stating that the latter cohort holds their Bitcoin “until it ultimately replaces fiat currencies.” For those who‘re aware of Schiff’s stance, the remark was more of a taunt directed towards the pro-Bitcoin crowd.

　　Schiffs views were strongly challenged. Andrew Munizresponded, “Exactly wrong. On large, ETF buyers are not day-traders or swing-traders, whereas spot traders are. Another X user Bart Bergargued that buyers of any financial asset, including gold, are future sellers. ”With that logic the market of anything is unstable, he added.

　　Why It Matters: This isn‘t the first time Schiff has expressed pessimism about Bitcoin’s prospects. In May, he used the excitement around EthereumETH/USD spot ETF approvals to question the future of Bitcoin, suggesting that any funds used to buy new Ether ETFs would likely come from existing Bitcoin ETFs.

　　Earlier that month, Schiff had declared Bitcoin to be in a bear market, despite the hype around spot Bitcoin ETFs. He compared Bitcoin‘s performance to gold and pointed out that Bitcoin’s previous support level of $60,000 now acts as resistance.

　　HIs remarks come as Bitcoin ETFs recorded outflows, snapping a 19-day winning streak, according to SoSo Value.

　　Disclaimer:This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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