The entire crypto industry is awaiting approval of spot bitcoin ETFs in the US to revolutionize the market and herald the next extended bull run for BTX. However, Chief Economist Peter Schiff has another opinion and believes that a btc price drop is on the horizon even before the SEC gives the green light to spot bitcoin ETFs.
Economist Peter Schiff warns of a possible bitcoin crash
Schiff recently created a social media poll and asked his more than 980,000 followers to vote on a timeline for the next bitcoin crash. The survey attracted a total of 24,599 votes, with the majority of respondents indicating that they anticipate a drop in price long after spot bitcoin ETFs are approved. However, a majority (68.1%) choose the “Buy and HODL to the Moon” option, indicating the long-term holding sentiment of many btc traders.
When bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin crash?
—Peter Schiff (@PeterSchiff) November 9, 2023
Schiff did not agree with the result of this poll voted on by his followers. The economist believes that the results pointed to a fall before the launch of the ETF, despite the fact that the option received only 8.9% of the votes.
Based on the results, I assume that bitcoin crashes before the ETF launch. That’s why people who bought the rumor won’t actually make a profit if they wait for the fact to sell.
—Peter Schiff (@PeterSchiff) November 10, 2023
This thought process is definitely not what bitcoin bulls want to hear right now, as the post attracted comments that disagree with Schiff. One user stated: “I’d say based on your results 70% of your followers have #bitcoin, that should tell you something.”
Why is Peter Schiff predicting a drop before ETF approval?
Schiff had made a post last month during bitcoin‘s rise above $30,000 to give some sort of explanation about his thought process. According to him, investors are buying btc now because they expect more investors to rush in once bitcoin ETFs are approved. But there could be more people waiting to sell and profit from the influx of prices.
This claim could be somewhat true, as btc could crash if holders decide to sell their assets during the price surge. Unsurprisingly, many investors disagreed with him.
Speculators are buying bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin now because they believe other speculators are waiting to buy a #BitcoinETF. They will soon discover that there are many more speculators waiting to sell than waiting to buy!
—Peter Schiff (@PeterSchiff) October 23, 2023
Schiff is known to make comments that contradict market sentiment around bitcoin. A post made in November 2018 showed the economist saying that bitcoin could fall from $3,800 to $750. The cryptocurrency would continue on to reach $13,000 in the following months.
Don’t make the mistake of thinking what to buy bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin below $3,800 is a bargain only because the current price is better than 80% below its all-time high. The price of bitcoin could easily drop another 80% from now on, already $750 would still be expensive!
—Peter Schiff (@PeterSchiff) November 25, 2018
The Bullish Case for Spot bitcoin ETFs
With SEC approval of bitcoin spot ETFs seemingly on the horizon, the bullish case for bitcoin is growing. The introduction of spot ETFs will usher in a new wave of investors and inject new money in btc which could push prices up much higher in the long term.
The SEC has bitcoin-etf-approval-this-week/” rel=”nofollow”>supposedly established a window from November 8 to 17 to decide on applications, but the industry could see the bitcoin-etfs-short-window-all-12-opens/” rel=”nofollow”>decision delayed until January 2024.
bitcoin is trading at $36,990 at the time of writing and is eyeing the next resistance at $37,000.
<img decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/RQK2cS20/" alt="bitcoin price chart from Tradingview.com (Economist Peter Schiff of Spot bitcoin ETF)” width=”2650″ height=”1742″ loading=”lazy”/>
btc bulls reclaim $37,000 | Source: BTCUSD on Tradingview.com
Featured image from Investment Monitor, chart from Tradingview.com
