Peter Schiff Predicts Significant Bitcoin Crash Ahead of US ETF Launch
Summary:
Gold bug Peter Schiff warns of a potential significant drop in Bitcoin's value before the anticipated launch of the United States' first Bitcoin spot price exchange-traded fund (ETF). Despite Bitcoin's recent surge and optimistic market sentiments, Schiff predicts a Bitcoin "collapse", either before or after the ETF's approval, expected in early 2024. However, his prediction contrasts with the institutional outlook which leans towards a positive outcome for Bitcoin, especially with AllianceBernstein's forecast of a $150,000 peak in the next cycle.
Notorious Bitcoin doubter Peter Schiff has raised the possibility of a significant drop in Bitcoin's price before a pivotal moment for institutional investors arrives. Schiff, who has a track record for publicizing his skepticism towards Bitcoin, has lately flagged concerns about the recent surge in Bitcoin prices. He believes that a Bitcoin price "collapse" could occur before the introduction of a spot-price Exchange-Traded Fund (ETF) in the United States.
Schiff, Europac's chief economist and global strategist, has been a consistent critic of Bitcoin over the years, frequently asserting that it lacks the value of gold and that its price is ultimately doomed to plummet. However, with Bitcoin's value currently hovering near an 18-month peak, Schiff's focus has shifted to the impending U.S. Bitcoin spot price ETF, an event that many believe will mark a turning point for cryptocurrencies.
Although the ETF is expected to get the green light in early 2024, the rapid climb of Bitcoin's price to over $37,000 last week has been linked to speculation that approval might be granted this month. Despite the popular belief that this news will spark a sell-off, Schiff posits that the fall in Bitcoin's price might occur even before the ETF gets approved.
In a recent poll conducted on Nov. 9, Schiff put forward two scenarios for a Bitcoin "collapse"— either before or after the launch of the ETF. The most popular option among the nearly 25,000 votes, however, was "Buy and HODL till the moon," securing 68% of votes. Nonetheless, Schiff held firm to his point of view.
Schiff replied to the poll results stating, "Considering these results, my prediction is a pre-launch Bitcoin crash. As a result, those who bought based on the rumor won't make any profit if they wait until the matter is official to sell."
Sentiments remain hopeful in the institutional realm, as the ETF discussion leans towards a favorable outcome for Bitcoin. In terms of positive Bitcoin price projections, AllianceBernstein's forecast of a $150,000 peak in the next cycle stands out. According to AllianceBernstein's analysis, "We anticipate that initial inflows may be modest and accumulate over time, with ETF flow momentum potentially building after the halving, leading to a cycle peak in 2025, not 2024."
The research firm suggests that the recent BTC rally is merely a response to the gradual assimilation of the potential ETF approval news by the market, which may initially be disappointed by the outflow. This article does not offer investment advice or recommendations. Investing and trading always involve risk, and individual research is strongly advised when making a decision.
Published At
11/12/2023 2:20:45 PM
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