Summary:
Peter Schiff, a known Bitcoin critic, believes the recent market sell-off exposes the myth of strong institutional demand for Bitcoin.
Schiff argues that institutions would have bought the Mt. Gox Bitcoin off-market if they truly held such strong demand.
He highlights the recent liquidations of Bitcoin holdings by the US and German governments as another factor contributing to the market crash.
Schiff predicts that Bitcoin ETF buyers will eventually capitulate as the price continues to fall, potentially leading to a much steeper drop this week.
Schiff disagrees with Nate Geraci, president of The ETF Store, who claims high demand for Bitcoin ETFs contradicts the notion of no demand, arguing instead that ETF buyers are actually future sellers and could face lawsuits due to potential losses.
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.
Comments