Prominent economist and gold advocate Peter Schiff has issued a stark warning to Bitcoin exchange-traded fund (ETF) investors, predicting a potentially bleak future for those betting on the cryptocurrency’s ETF-driven rally.
Prominent economist and gold advocate Peter Schiff has issued a stark warning to Bitcoin exchange-traded fund (ETF) investors, predicting a potentially bleak future for those betting on the cryptocurrency’s ETF-driven rally.
According to Schiff, the rise in Bitcoin price, which recently saw the digital currency reclaim the $67,000 level amid growing hype around Bitcoin ETFs, could be setting up a dramatic reversal.
Schiff maintains that ETFs are “the tail wagging the Bitcoin dog.” ETFs have fueled Bitcoin’s rise, but could also cause it to fall due to a potential mismatch between supply and demand when investors decide to sell.
Bitcoin mania overshadows gold rally
As Guru-Investingreported, Schiff recently focused incessantly in the media on Bitcoin’s rally as a distraction from gold’s important breakout above $2,100.
He argues that cryptocurrency mania is preventing retail investors from recognizing the value of gold, a traditional safe haven asset.
Schiff predicts that when the Bitcoin bubble bursts and media attention returns to gold, retail investors will face much higher prices to enter the gold market.
This super-bearish outlook offers a cautionary note for those swept up in the enthusiasm surrounding digital currencies. However, it is worth noting that most of Schiff’s Bitcoin price predictions have aged terribly.
Price surge fueled by Bitcoin ETFs
The recent rise in Bitcoin price to $64,000, approaching its all-time high, has been largely attributed to growing interest in Bitcoin ETFs.
The BlackRock iShares Bitcoin Trust (IBIT) broke records by accumulating $10 billion in assets under management (AUM) in just seven weeks, a testament to growing institutional demand for exposure to cryptocurrencies.
Additionally, the Bitcoin halving event, which historically leads to a supply shock, has driven the cryptocurrency’s value upward, capturing the attention of investors and analysts alike.
