News
Peter Schiff Criticizes Bitcoin Bulls, Mocks Institutional Demand
Peter Schiff criticizes Bitcoin (BTC) bulls for the recent decline in the asset’s price and the cryptocurrency market in general. The legendary trader highlighted the “myth” of institutional demand, highlighting why, despite macro and sector factors, the asset’s price could have avoided the downtrend. Institutional demand has become a rallying point for several market participants this year.
Peter Schiff mocks institutional demand
Peter Schiff noted that the recent sell-off has highlighted talk of growing institutional demand for Bitcoin. In a July 6 tweet, he poked holes in the dominant narrative in line with the Mount Gox payment that shook the entire market.
“Bitcoin pumpers are attributing the decline to Mt. Gox redemption-related selling. While that is part of the story, the rest of the sell-off exposes the myth of institutional demand. If such demand existed, buyers would jump at the chance to buy Mt. Gox Bitcoin off-market.”
The cryptocurrency market has fallen to monthly lows. Total market capitalization has fallen below $2.07 trillion with over $170 trillion wiped out as sentiments plummeted. A key driver of the low sentiment was the announcement of a nearly $9 billion payment to Mt Gox creditors. Additionally, the German government sold a batch of seized Bitcoin, causing prices to plummet. These activities, combined with macroeconomic sentiments, triggered a bearish reaction from investors.
Should institutions step forward?
According to Peter Schiff, if there was high institutional demand for Bitcoin, companies would have obtained those assets to prevent a market impact. While this may not be the case, as the assets were sent to centralized exchanges along with other factors, cryptocurrency users have pointed to the growing institutional demand. This year, spot approval
Bitcoin ETFs took the asset to an all-time high above $73,000 and attracted participation from several companies. This led institutions to explore Ethereum ETFs along with new Solana applications filed.
Read also: Cardano Hits Major Milestone With CIP25 Metadata, Here’s What It Means
David is a financial news contributor with 4 years of experience in Blockchain and cryptocurrency. He is interested in learning about emerging technologies and has an eye for breaking news. Keeping up to date with trends, David has written in several niches including regulation, partnerships, cryptocurrency, stocks, NFTs, etc. Away from the financial markets, David enjoys cycling and horseback riding.