Peter Schiff Warns of Bitcoin ETF Investors Being Set Up as Bag Holders
The renowned economist and Bitcoin critic, Peter Schiff, has raised concerns about ETF investors potentially becoming the “bag holders” of losses in the cryptocurrency market. Schiff pointed out that while the “smart money” is selling Bitcoin in the spot market, the “dumb money” is buying it through ETFs.
In a recent tweet, Schiff congratulated Bitcoin whales for orchestrating this scenario, where ETF investors could end up holding poorly performing assets. This comes at a time when Bitcoin is facing pressure due to potential sell-offs from Mt. Gox, a Tokyo-based cryptocurrency exchange.
Schiff highlighted that 70% of spot Bitcoin ETF buyers are already losing money at the $54,000 level, and a further decline could push all buyers into the red zone. He anticipates that significant selling may occur if Bitcoin drops below $38,000, leading many ETF speculators to capitulate.
Despite the recent market crash, U.S.-listed spot Bitcoin ETFs saw net outflows of $143 million last Friday. Schiff remains steadfast in his belief that Bitcoin’s bear market is far from over, predicting further downside for the cryptocurrency.
As of now, Bitcoin is trading at $54,694.25, down 5.64% in the last 24 hours. Schiff’s warnings serve as a cautionary tale for investors navigating the volatile cryptocurrency market.
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