Prominent economist and gold advocate Peter Schiff has issued a stark warning to investors of Bitcoin exchange-traded funds (ETFs), predicting a potentially grim future for those betting on the cryptocurrency’s ETF-driven rally.
According to Schiff, the surge in Bitcoin’s price, which recently saw the digital currency reclaim the $67,000 level amid growing hype around Bitcoin ETFs, could be setting up for a dramatic reversal.
Schiff argues that the ETFs are “the tail that wags the Bitcoin dog.” The ETFs have fueled Bitcoin’s ascent, but they could also lead to its downfall due to a potential mismatch in supply and demand when investors decide to sell.
As reported by U. Today, Schiff recently the media’s relentless focus on Bitcoin’s rally as a distraction from gold’s significant breakout above $2,100.
He argues that the cryptocurrency mania is preventing retail investors from recognizing the value in gold, a traditional safe-haven asset.
Schiff predicts that by the time Bitcoin’s bubble bursts and media attention shifts back to gold, retail investors will face much higher prices to enter the gold market.
This uber-bearish perspective offers a cautionary note to those swept up in the excitement surrounding digital currencies. However, it should be noted that most of Schiff’s Bitcoin price predictions have aged terribly.
Bitcoin’s recent price surge to $64,000, approaching its all-time high, has been largely attributed to the burgeoning interest in Bitcoin ETFs.
The BlackRock iShares Bitcoin Trust (IBIT) notably shattered records by amassing $10 billion in assets under management (AUM) in just seven weeks, a testament to the growing institutional demand for cryptocurrency exposure.
Moreover, Bitcoin’s halving event, which historically leads to a supply shock, has propelled the cryptocurrency’s value upward, capturing the attention of investors and analysts alike.