Peter Schiff, a well known economist and advocate for gold, has issued a severe warning to buyers 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 may result in hassle 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 essential 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 may additionally trigger its downfall if there’s a sudden rush to promote.
“Loads much less cash will come out of the ETFs than went in. When ETF patrons flip into sellers, there gained’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 vital breakout above $2,100. He believes that the hype round cryptocurrency prevents buyers from appreciating the worth of gold, a standard safe-haven asset.
“CNBC is so fixated on the sideshow happening with Bitcoin and the brand new BitcoinETFs, that they haven’t even reported on as we speak’s $43 rise within the value of gold, or the brand new record-high value within the gold ETF $GLD.”
Constructing on this evaluation, Schiff anticipates that after the Bitcoin bubble bursts and the main target shifts again to gold, retail buyers will encounter considerably larger entry costs.
Regardless of Schiff’s bearish outlook serving as a cautionary story, it’s necessary to acknowledge that lots of his earlier Bitcoin value predictions have missed the mark.