After the approval of the Bitcoin spot ETF this month, the price of Bitcoin has continued to decline. 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 face a disastrous outcome.
Peter Schiff, the CEO of Euro Pacific Capital and a prominent figure in the gold industry, had previously warned that the approval of spot ETFs could result in a collapse of the cryptocurrency’s price. He believes that the introduction of Bitcoin spot ETFs will prove to be a meaningless event of little significance in history, as institutional investors will not have a significant demand for it.
As a result, Bitcoin has continued to decline after the listing of spot ETFs, as Peter Schiff predicted. This led him to confidently tweet on the 23rd, stating that a bear market is defined as a decline of more than 20% from a higher 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%. Peter Schiff suggested that the trading code for VanEck Bitcoin Trust ETF, HODL, should be renamed GTFO (Get The Fuck Out), implying that the new ETF does not create additional demand.
Peter Schiff believes that the new Bitcoin spot ETFs have not created additional demand but rather 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 introduction of Bitcoin spot ETFs is Coinbase. Despite being selected as a custodial service provider by multiple issuers, many speculative traders who previously traded Bitcoin through the Coinbase platform are now turning to trade spot ETFs. Investors who purchased Coinbase stocks as a substitute for Bitcoin exposure are also shifting towards buying spot ETFs.
On Monday, JPMorgan downgraded Coinbase stocks from neutral to underweight and lowered the target price to $80, which is more than a 35% decline from the current stock price of $124.19. The reason for the downgrade is the fear of a reversal in market optimism for spot ETFs, leading to a decline in cryptocurrency prices and trading volume, which could impact Coinbase.
Peter Schiff had previously warned that GBTC from Grayscale, MicroStrategy, and other cryptocurrency-related stocks are not looking good. Investors will sell off these assets after the approval of ETFs, and these targets will face the risk of significant profit-taking reversal, potentially turning unrealized gains into realized losses.
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