Bitcoin (BTC) has sent shockwaves through the cryptosphere with a recent dip below $70,000. This has fueled anxieties, particularly among investors in Bitcoin exchange-traded funds (ETFs). Renowned economist Peter Schiff, a long-time Bitcoin critic, wasted no time in reminding ETF holders of his previous warnings.
Schiff’s Doomsday Scenario:
Schiff has consistently highlighted the vulnerability of Bitcoin ETF holders during off-market hours. He recently tweeted, emphasizing the overnight risk faced by ETF investors:
“Peter Schiff cautioned that Bitcoin ETF holders have a nerve-wracking night ahead if Bitcoin can take a nosedive. They are still left waiting right until the NYSE opens tomorrow morning to make any moves. Keep onto your hats!” (Source: Peter Schiff @PeterSchiff, April 14, 2024)
Schiff argues that limited overnight liquidity in the US market exposes ETF holders to potential crashes without the ability to react.
Schiff’s Price Prediction:
Given the current market movements, Schiff predicts a crucial support level for Bitcoin at $60,000. A decisive break below this level could form a bearish “triple top” pattern, potentially triggering a drop to $20,000. He also anticipates significant unrealized losses for MicroStrategy (MSTR) due to their substantial Bitcoin holdings.
Current Market Status:
As of now, Bitcoin is trading at $66,790, reflecting a 4.23% increase in the last 24 hours. While it’s attempting recovery, the recent volatility underscores the underlying concerns.
Considering All Angles:
While Schiff raises valid points about Bitcoin ETFs, it’s crucial to acknowledge other perspectives. Some investors might find ETFs a more accessible way to gain exposure to Bitcoin. The cryptocurrency market remains dynamic and multifaceted.
Disclaimer: This information is for informational purposes only and should not be considered financial advice. Investments involve risk.
