Bitcoin Crash Exposes Institutional Demand Myth, Claims Peter Schiff
Prolific Bitcoin critic Peter Schiff argues the recent market sell-off exposes the myth of strong institutional demand for Bitcoin. He believes that if institutional buying was as substantial as many claim, the Mt. Gox repayments wouldn't have caused such a significant crash.
Schiff states that institutions would have jumped at the opportunity to buy the Mt. Gox Bitcoin off-market if they truly held such strong demand. He further points to the recent liquidations of Bitcoin holdings by the US and German governments as another bearish headwind that exacerbated the market crash.
Schiff also predicts that Bitcoin ETF buyers, who recently injected $143.1 million worth of inflows, will eventually capitulate as the price continues to fall. He expects a much steeper drop in price to trigger their capitulation, potentially occurring this week.
While Nate Geraci, president of The ETF Store, argues that the high demand for Bitcoin ETFs contradicts the notion of no demand, Schiff maintains his position that these buyers are actually future sellers and could face lawsuits from buyers due to potential staggering losses.
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