After the approval of the Bitcoin spot ETF this month, the price of Bitcoin continues to fall. Peter Schiff, the founder of SchiffGold and a well-known critic of Bitcoin, stated today that all Bitcoin spot ETFs are currently in a bear market, and investors who buy Bitcoin spot ETFs will suffer severe consequences.
Peter Schiff, the CEO of Euro Pacific Capital and a prominent gold bull, had previously warned that the approval of spot ETFs could lead to a collapse in Bitcoin prices. He believed that institutional investors would not have a significant demand for it. He considered the launch of Bitcoin spot ETFs to be a meaningless event with little historical significance.
As a result, after the listing of spot ETFs, Bitcoin continued to decline as Peter Schiff had predicted. On the 23rd, he confidently tweeted that a bear market is defined as a drop of more than 20% from a high point, and now all Bitcoin spot ETFs are in a bear market. The biggest loser is FBTC (Fidelity Wise Origin Bitcoin Fund), which has dropped by 32%. He also suggested that the trading symbol of VanEck Bitcoin Trust ETF, HODL, should be renamed GTFO (Get The Fuck Out), indicating that the new ETF did not create additional demand.
Peter Schiff believes that the new Bitcoin spot ETFs have not created additional demand but only changed the existing demand. Investors who previously purchased Bitcoin or Bitcoin-related stocks (such as $MSTR or $GBTC) are now simply shifting their focus to buying the new Bitcoin spot ETFs.
In Peter Schiff’s view, one of the biggest losers after the emergence of Bitcoin spot ETFs is Coinbase. Despite being selected as a custodian service provider by multiple issuers, many speculators who previously traded Bitcoin through the Coinbase platform are now shifting to trading spot ETFs. Investors who bought Coinbase stocks as a Bitcoin substitute are also shifting towards purchasing spot ETFs.
On Monday, JPMorgan downgraded Coinbase stocks from neutral to underweight and lowered the target price to $80, a decrease of over 35% from the current price of $124.19. The reason for the downgrade is the concern that the market’s optimism towards spot ETFs may reverse, leading to a decrease in coin prices and trading volume, which would subsequently affect Coinbase.
Peter Schiff had previously warned that GBTC, MicroStrategy, and other cryptocurrency-related stocks are quite precarious, and investors will sell off these assets after the approval of ETFs. These targets will face the risk of significant profit-taking and may even turn unrealized gains into realized losses.
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