Benzinga - Influential investor Peter Schiff cautions Bitcoin (CRYPTO: BTC) speculators about potential pitfalls ahead, especially in light of the recent enthusiasm around a possible Bitcoin ETF approval.
What Happened: On Monday, Schiff took to Twitter to express his concerns about the recent surge in Bitcoin speculations, primarily driven by the anticipated approval of a Bitcoin ETF. He cautioned traders that the current buying frenzy might soon be overshadowed by a wave of selling. Schiff believes that the number of speculators ready to sell far outnumbers those waiting to buy.
Speculators are buying #Bitcoin now because they think other speculators are waiting to buy a #BitcoinETF. They will soon discover that there are far more speculators waiting to sell then waiting to buy!— Peter Schiff (@PeterSchiff) October 23, 2023
See Also: Crypto Analyst Predicts Dogecoin Smashing All-Time Highs, Will Soar Over 27,000% And Reach $16
This warning comes amidst a bullish run for Bitcoin, which recently topped $33,000 at the time of publishing.
The digital asset saw a trading volume increase of 36% to $17.6 billion within 24 hours and an expansion of 2.5% in its market capitalization, as reported by Benzinga earlier.
Why It Matters: The potential approval of a spot Bitcoin ETF has sparked significant investor interest. Digital Asset Fund Flows marked the fourth consecutive week of inflows at $66 million in digital assets investment products, according to Benzinga.
However, Schiff has previously dismissed the notion that a spot Bitcoin ETF would drive adoption. He believes that it merely facilitates speculative betting on price movements, and does not constitute a legitimate use case for the cryptocurrency. He reiterated this view in his recent tweet, warning speculators of the risks involved.
Photo by AlyoshinE on Shutterstock
Read Next: Bitcoin, Dogecoin, Ethereum Funding Hamas Terror? $41M Of Crypto Seized So Far Could Just Be Drop In Buck
Engineered by Benzinga Neuro, Edited by
Shivdeep Dhaliwal
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you.
Learn more.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.