Bitcoin is poised for a significant price correction, according to gold advocate Peter Schiff, just ahead of a crucial moment for institutional investors. Schiff, a long-time critic of Bitcoin, has expressed concerns about the recent price surge of BTC.
Schiff, the chief economist and global strategist at Europac, has consistently argued that Bitcoin’s value will ultimately drop to zero, contrasting it with gold, which he considers a reliable store of value.
He believes that most people only hold Bitcoin with the intention of selling it at a higher price later.
Now, as the BTC/USD pair hovers around 18-month highs, Schiff has turned his attention to what some consider a pivotal moment for cryptocurrency: the launch of the first Bitcoin spot price exchange-traded fund (ETF) in the United States.
This ETF is expected to gain approval in early 2024, and rumors of a possible approval in November have fueled last week’s price surge, pushing Bitcoin past $37,000.
While some anticipate a “sell the news” event, where investors reduce their exposure once the ETF is approved,
Schiff believes that a Bitcoin price correction may not even wait for that. In a recent survey conducted on November 9, Schiff presented two scenarios for a potential Bitcoin crash: one before the ETF launch and one after.
However, the majority of respondents chose the option to “Buy and HODL till the moon,” indicating their belief in Bitcoin’s long-term potential.
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Despite the survey results, Schiff remains steadfast in his view, stating, “Based on the results, my guess is that Bitcoin crashes before the ETF launch.
That’s why the people who bought the rumor won’t actually profit if they wait for the fact to sell.”
Institutional sentiment regarding Bitcoin appears to be improving as the ETF debate leans in favor of Bitcoin.
Some analysts, like AllianceBernstein, have even predicted a peak price of $150,000 in the next cycle.
They anticipate that ETF flows could start slowly and gradually build up, leading to a cycle peak in 2025 rather than 2024.
This recent breakout in Bitcoin’s price is seen as a gradual pricing in of the positive ETF approval news, with market participants closely monitoring initial outflows and potential short-term disappointments.
As a disclaimer, it’s important to note that this article does not provide investment advice or recommendations.
All investment and trading decisions carry risks, and readers should conduct their own research before making any investment decisions.
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