- The popular gold bug continues with his barrage against bitcoin, but his latest warning came amid times of price resurgence as the cryptocurrency skyrocketed above $70,000.
- Schiff actually thinks that a lot of bad news will hit BTC if the US Securities and Exchange Commission indeed greenlights spot Ethereum ETFs.
- “Investors who decided to make an allocation to crypto won’t increase that allocation to buy Ether.” — Peter Schiff
Explore the implications of potential Ethereum ETF approvals on Bitcoin’s market dynamics in this detailed analysis.
Schiff Goes After Bitcoin Again
Spot ETFs became the main news in the cryptocurrency industry this year after the US SEC approved almost a dozen such BTC products in mid-January after a decade of rejecting or delaying all applications. Other countries and special territories like Hong Kong followed suit, but the US remains the biggest market; hence, all eyes are on the regulatory agency to see whether another asset will receive such a validation.
Market Reactions and Future Predictions
Being the second-largest cryptocurrency by market cap, Ethereum is, expectedly, at the forefront of this trend. However, the Commission has already delayed making a decision on several ETH ETF applications this year, and the chances of approval coming soon are quite slim. Or, they were quite slim until yesterday, when Bloomberg’s ETF experts raised their prediction approval percentages about May from 25% to 75%. In a matter of minutes, the underlying asset exploded by 10% and later 20%, hitting a multi-week high of over $3,800 earlier. However, BTC’s price also surged from under $67,000 to around $72,000 – a 6-week peak of its own.
Not So Fast
Before any BTC fans, investors, or HODLers get mad or worried by Schiff’s comments, they should be aware of his past and success rates when it comes down to bashing the asset. He has been criticizing it for years, constantly issuing warnings about potential bubbles and how investors should stay away. Yet, his successful warnings are rare. For example, less than a month ago, he used another BTC correction to forecast even more pain for the bulls. At the time, BTC had dropped to $63,000 and warned that if bitcoin dumps beneath $60,000, there will be a “long way down.” The asset indeed slipped beneath $60,000, but only briefly. Instead of taking that long way down, it bounced off and now trades above $70,000.
Conclusion
This analysis provides a comprehensive look at the potential impacts of Ethereum ETFs on Bitcoin’s market position. While Peter Schiff’s warnings often grab headlines, the actual market dynamics may paint a different picture, with Bitcoin showing resilience and potential for growth despite competition.
