Benzinga - Noted economist Peter Schiff cautioned that the much-anticipated Bitcoin ETF approval rally may not meet speculators’ expectations and that it would be “better to sell today.”
What Happened: Schiff, in a tweet on Tuesday, noted the volatility of Bitcoin (CRYPTO: BTC) following a false announcement of Bitcoin ETF approval by a compromised @GaryGensler Twitter account. He suggested that the market might not deliver the anticipated rally when the actual approval is announced, considering the high number of speculators.
He said, “With so many speculators expecting a rally, it’s hard to believe the market will deliver.”
#Bitcoin spiked near $48K then dumped near $45K following a hacked @GaryGensler post announcing the approval of #BitcoinETFs. An actual approval is expected tomorrow. With so many speculators expecting a rally, it's hard to believe the market will deliver. Better to sell today.— Peter Schiff (@PeterSchiff) January 9, 2024
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“It wasn’t much of a pump. Rally on the fake news, sell off on the real news. Of course, the ETFs may not even get approved,” Schiff added in another tweet.
It wasn't much of a pump. Rally on the fake news, sell off on the real news. Of course, the ETFs may not even get approved.— Peter Schiff (@PeterSchiff) January 9, 2024
According to Schiff, as reported earlier, the situation is not a typical “buy the rumor, sell the news” scenario. He warned, “It's a ‘buy the rumor, sell the rumor of the news' event."
Bitcoin traded 2.03% lower at $45,779.97 over 24 hours at the time of publishing. The apex cryptocurrency fell 4.4% from its Tuesday intraday high of 47,893.70.
Data, from Coinglass, indicated that over 24 hours $46.70 million worth of Bitcoin longs were liquidated.
Why It Matters: The anticipated approval of Bitcoin ETFs by the Securities and Exchange Commission (SEC) has sparked much speculation in the market.
Schiff’s caution comes in the wake of a compromised SEC tweet falsely announcing the approval of Bitcoin ETFs, causing market mayhem.
Schiff has previously predicted a Bitcoin crash before the ETF launch, warning that those who bought the rumor won’t profit if they wait for the launch to sell their Bitcoin holdings.
Photo Courtesy: Wikimedia Commons
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