After the rece rise in the price of Bitcoin, Peter Schiff, one of the oldest oppones of this digital currency, is warning about the possibility of its fall again. He believes that Bitcoin will see a sharp drop in price before spot ETFs are approved.
Bitcoin price crash ahead of ETFs approval
According to Coielegraph, Bitcoin is a favorite topic of criticism for Peter Schiff, chief global economist and strategist at Euro Pacific Capital.
Over the years, he has repeatedly emphasized that unlike gold, Bitcoin will be worth zero, and in reality, no one was to hold Bitcoin unless they wa to sell it at a higher price in the future.
Now, with the price hitting an 18-moh high, Schiff is turning his atteion to what some say will be a turning poi in the cryptocurrency market's growth: the launch of the first U.S. spot bitcoin ETF.
While rumors of the first spot ETF launching in November fueled bitcoin's price rally to over $37,000 last week, the SEC is expected to approve the first applications in early 2024.
While some believe that investors will sell off Bitcoin once they are assured of ETF approval, Schiff believes that we will see the price of Bitcoin fall before that happens.
In a poll on Platform X on November 9, he preseed two scenarios for the fall of Bitcoin: before and after the launch of ETFs. In the end, 68% of the respondes chose the “Buy and Hoddle till the Moon” option out of about 25,000 votes.
Despite this result, Schiff stood his ground. He replied:
Based on the results, my guess is that the price of Bitcoin will crash before the ETFs launch. This is why people who bought Bitcoin on these rumors will not actually make a profit if they wait to sell it uil the actual news is released.
Price increases from ETF approvals are slowly being fed
Among the latest bullish Bitcoin price predictions, investme firm Alliance Bernstein predicted last week that the price of Bitcoin will reach 150,000 at the peak of the next cycle.
In a note cited by MarketWatch and others, analysts wrote:
We believe that the process of capital inflow will be slow at first and will increase gradually. With the increase of capital inflow after the approval of ETFs and halving, we will witness the formation of the peak of the new cycle in 2025.
They noted:
Bitcoin's curre breakout is simply the result of ETF approval news spreading slowly, and then the market will see an initial exodus and likely short-term disappoime.
