ETFs
Peter Schiff Says ‘Smart Money Is Selling’ and Dumb Money Is Buying It Via ETFs: ‘They’re Making Bitcoin ETF Investors Hold Their Bags’
Economist and enthusiast Bitcoin BTC/USD Review Pierre Schiff recently expressed concerns that ETF investors would be forced to bear the brunt of losses.
What happened:On Sunday, Schiff took the X He shared his observations on current trading trends and Bitcoin inflows into ETFs. He suggested that while “smart investors” are selling Bitcoin in the spot market, “dumb investors” are buying it through ETFs.
In what seemed like a cheeky remark, Schiff praised Bitcoin whales for making ETF investors bag holders, a financial slang term used for those who hold underperforming assets.
Schiff’s post comes in the wake of continued Bitcoin stress, compounded by potential billion-dollar sales of King Cryoto by the Tokyo-based cryptocurrency exchange. Mount Gox.
Why is this important?:Schiff said last week that 70% of those who bought Bitcoin spot ETFs lose money when Bitcoin trades at the $54,000 level. He suggested that a drop below $38,000 would push “100% of Bitcoin ETF buyers” into the red. Schiff expects the real selling to begin at that point, with most crypto ETF speculators likely to capitulate.
Despite one of the biggest market crashes, the 11 US-listed Bitcoin ETFs saw net outflows of $143 million last Friday.
Schiff has been vocal in his belief that the cryptocurrency bear market is far from over, predicting further declines for the world’s largest cryptocurrency, Bitcoin.
Price action:At the time of writing, Bitcoin was trading at $54,694.25, down 5.64% over the past 24 hours, according to Benzinga Pro data.
Photo courtesy of Wikimedia Commons
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.