Renowned American economist and outspoken crypto skeptic Peter Schiff has made bold assertions, predicting a looming market downturn upon the launch of a Bitcoin Exchange-Traded Fund (ETF). Schiff, known for his persistent criticism of cryptocurrencies, took to Twitter to warn investors about the potentially catastrophic repercussions of the much-anticipated ETF introduction.
In a recent tweet, Schiff highlighted Bitcoin’s surge toward the $38,000 mark, attributing it to speculators attempting to capitalize on the imminent launch of a new Bitcoin ETF. He cautioned that while the current market is abuzz with enthusiastic speculators, these early investors will have already made their purchases once the ETF is officially launched.
Schiff’s forecast hinges on the idea that once these initial buyers sell their holdings to secure profits, there will be a scarcity of interested buyers left to support the ETF. Consequently, he anticipates a significant market crash due to the dwindling demand post-ETF release.
Schiff’s remarks have added fuel to the ongoing debate about the potential impact of a Bitcoin ETF on the crypto market. While proponents view the ETF as a gateway for institutional investment and a catalyst for broader adoption, critics like Schiff continue to emphasize the speculative nature of such developments and their potential to trigger market turbulence.
JPMorgan Skepticism on Bitcoin Rally
Adding to the cautionary tone, JPMorgan analysts have also expressed doubt about the sustainability of the recent surge in the crypto market. Their analysis pointed to two key factors propelling the crypto rally. Firstly, they highlighted the expectation surrounding the approval of a spot Bitcoin ETF in the United States, foreseeing an inflow of new investments into the crypto markets.
Additionally, a green light for this ETF could signify a victory for the crypto industry and potentially influence a more permissive stance from the Securities and Exchange Commission (SEC) in the future.
However, the JPMorgan analysts cast skepticism upon these driving factors. They contested the notion that fresh capital would pour into the newly approved ETFs, arguing that existing funds might merely shift from current Bitcoin products toward the new ETFs.
Highlighting the precedent of spot Bitcoin ETFs in Canada and Europe, which garnered limited investor interest upon their launch, the analysts remained skeptical about a substantial influx of new capital into the recently approved spot Bitcoin ETFs in the U.S.
This divergence in opinions between Schiff, a vocal crypto critic, and JPMorgan analysts underscores the uncertainty surrounding the potential impacts of the Bitcoin ETF launch on the cryptocurrency market.