Markets
Peter Schiff Warns of Market Instability Amid ETF Buyers’ Bitcoin Dependence: ‘It Makes the Whole Market More Unstable’
June 12, 2024 12:16 pm | 2 minutes reading
Renowned and firm economist Bitcoin (CRYPTO: Bitcoin) Peter Schiff expressed concern about the stability of the digital asset market, attributing it to the potential influx of institutional ETF buyers.
What happened: On Tuesday, Schiff took to Xpreviously Twitter to express his skepticism about the future of Bitcoin. He argued that reliance on institutional buying of ETFs to drive up Bitcoin prices could lead to market instability.
“Bitcoin pumpers are counting on institutional ETF buying to drive prices higher. But this makes the entire market even more unstable, since all ETF buyers are future sellers,” Schiff wrote.
He even compared ETF buyers to spot buyers, stating that the latter group holds onto their Bitcoin “until it replaces fiat currencies.” For those aware of Schiff’s stance, the comment was more of a dig aimed at the pro-Bitcoin crowd.
Schiff’s views were strongly contested. André Muniz replied: “Exactly wrong. In general, ETF buyers are not day-traders or swing-traders, whereas spot traders are. Another user Bartberg argued that buyers of any financial asset, including gold, are future sellers. “With this logic, the market for anything is unstable,” he added.
Why does this matter: This is not the first time Schiff has expressed pessimism about Bitcoin’s prospects. In May, he took advantage of the excitement Ethereum (CRYPTO: ETH) identify ETF approvals for question the future of Bitcoinsuggesting that any funds used to purchase new Ether ETFs would likely come from existing Bitcoin ETFs.
Earlier that month, Schiff had declared that Bitcoin is in a bear market, despite the excitement surrounding spot Bitcoin ETFs. He compared Bitcoin’s performance to gold and pointed out that Bitcoin’s previous support level of $60,000 now acts as resistance.
His comments come as Bitcoin ETFs record outflows, breaking a 19-day winning streak, according to for the SoSo value.
Read next: Dogecoin and Shiba Inu Continue to Generate High Trading Volume, Report Concludes
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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