Benzinga - Renowned economist and staunch Bitcoin (CRYPTO: BTC) Peter Schiff has expressed concerns over the stability of the digital asset’s market, attributing it to the potential influx of institutional ETF buyers.
What Happened: On Tuesday, Schiff took to X, formerly Twitter to voice his skepticism about Bitcoin’s future. He argued that the reliance on institutional ETF buying to drive up Bitcoin prices could lead to market instability.
“Bitcoin pumpers are counting on institutional ETF buying to drive higher prices. But this makes the entire market even more unstable, as all ETF buyers are future sellers,” Schiff wrote.
#Bitcoin pumpers are counting on institutional ETF buying to drive higher prices. But this makes the entire market even more unstable, as all ETF buyers are future sellers. In contrast, many spot buyers intend to hold their Bitcoin until it ultimately replaces fiat currencies.— Peter Schiff (@PeterSchiff) June 11, 2024
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He even contrasted the ETF buyers with spot buyers, stating that the latter cohort holds their Bitcoin “until it ultimately replaces fiat currencies.” For those who’re aware of Schiff’s stance, the remark was more of a taunt directed towards the pro-Bitcoin crowd.
Schiff’s views were strongly challenged. Andrew Muniz responded, “Exactly wrong. On large, ETF buyers are not day-traders or swing-traders, whereas spot traders are. Another X user Bart Berg argued that buyers of any financial asset, including gold, are future sellers. “With that logic the market of anything is unstable,” he added.
Why It Matters: This isn’t the first time Schiff has expressed pessimism about Bitcoin’s prospects. In May, he used the excitement around Ethereum (CRYPTO: ETH) spot ETF approvals to question the future of Bitcoin, suggesting that any funds used to buy new Ether ETFs would likely come from existing Bitcoin ETFs.
Earlier that month, Schiff had declared Bitcoin to be in a bear market, despite the hype around spot Bitcoin ETFs. He compared Bitcoin’s performance to gold and pointed out that Bitcoin’s previous support level of $60,000 now acts as resistance.
HIs remarks come as Bitcoin ETFs recorded outflows, snapping a 19-day winning streak, according to SoSo Value.
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