Benzinga - Peter Schiff, a renowned economist and a critic of Bitcoin (CRYPTO: BTC), has voiced concerns over a potential pump-and-dump scenario in the cryptocurrency market, coinciding with the “ongoing four-day conference” that began on Super Bowl Sunday.
What Happened: Schiff’s post on X, formerly Twitter, on Tuesday indicated his suspicion over the recent hype surrounding the newly listed Bitcoin ETFs. He insinuated that a “massacre” may be looming.
It looks like another classic pump-and-dump is going on with #Bitcoin and the @exchangeETF. The four-day conference kicked-off on Super Bowl Sunday and ends on Valentine's Day. There's a lot of hype surrounding the newly listed #BitcoinETFs. I wonder when the massacre will begin.— Peter Schiff (@PeterSchiff) February 12, 2024
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His tweet points to the ongoing festive mood that started on Super Bowl Sunday and is set to conclude on Valentine’s Day.
“It looks like another classic pump-and-dump is going on with #Bitcoin and the @exchangeETF,” Schiff posted.
Why It Matters: The cryptocurrency market has seen a significant surge in Bitcoin’s value, with it even touching the $50,000 mark on Monday, as reported by Benzinga.
This rise is attributed to strong inflows into spot Bitcoin ETFs, which garnered over $1.1 billion in fresh funds last week. The Blackrock iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund reached $3 billion in AUM within their first 30 days, an unprecedented achievement.
However, Schiff’s skepticism seems to stem from the belief that this sudden spike might be a set-up for a sharp fall, a pattern commonly referred to as a pump-and-dump scheme. It should be noted that the economist has previously warned about a news cycle-oriented pump around the time the spot ETFs made their debut.
Price Action: At the time of publishing, Bitcoin traded at $50,101.18, the cryptocurrency touched an intraday high of $50,280.48 during the past 24 hours.
Photo Courtesy: Wikimedia Commons
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