After an extraordinary bullish period, much of the cryptocurrency market is flashing red. Leading crypto Bitcoin is leading this trend. Famous Bitcoin critic and gold bug Peter Schiff talked about a catastrophic crash due to ETFs.
Because of ETFs, Bitcoin will “crash terribly!”
A prominent Bitcoin skeptic expressed the view that the more Bitcoin enters ETFs, the more vulnerable it will become to a “catastrophic crash”, according to his post on social media platform X. In this context, Schiff shared the following:
The more Bitcoin is transferred to ETFs, the more vulnerable Bitcoin becomes to a catastrophic crash. That’s because ETF buyers are more traders than true believers. So if Bitcoin is rising, they will also accompany this rise. But when they enter a bear market, they will flee.
Peter Schiff: ETF crashed even without an exit!
Crypto market enthusiasts said crashes are normal in the industry. They also commented that it occurs every four years. The economist who answered them acknowledged this. But he added that it had never happened before with “this much BTC coming out of ETFs”:
These will be market orders, they will have no limits and will need to be filled when they arrive. Buyers must pay in real dollars. Tether (USDT) purchases will not be allowed.
Shortly after, Schiff pointed out that “Bitcoin has fallen 15% from its peak price of just under $74,000 without a single day of outflows from the new Bitcoin ETFs (not counting GBTC).” He suggested it would fall further “without ETF buying” and even “when there is an outflow from all Bitcoin ETFs.”
A comparison for gold and Bitcoin ETFs
One commenter asked what would happen to the price of gold if gold ETFs started selling. He challenged Schiff’s views with this question. Continuing the discussion, the Bitcoin critic said that “there have been outflows in gold ETFs all year long.” So, he argued, “it will still continue to rise.” In this regard, Schiff said:
This did not prevent gold from breaking new records. Bitcoin needs ETF buying. If ETFs start selling, Bitcoin will crash. There is not enough buying in the spot market to balance the sales volume.
Peter Schiff Bitcoin views
cryptokoin.comAs you follow from , Schiff had another heated argument with the crypto community earlier this year. He said Bitcoin could reach $10 million by 2031, but only if the US dollar becomes worthless like the German Papiermark.
More recently, he called BTC “part of the speculation and gambling movement.” “(…) Bitcoin had its own narrative with all these ETFs coming to market,” Schiff said. There are a dozen or so Bitcoin ETFs. “So there was a lot of hype leading to this rally,” he said. In this way, he referred to the price increase that started in February. In conclusion, Peter Schiff may or may not be right about the future of Bitcoin. But whether one agrees with him or not, caution is always necessary, be it crypto assets or precious metals like gold. It is critical to do detailed research before investing in any of them.
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