Peter Schiff Questions Institutional Demand Amid Bitcoin’s Recent Sell-Off
Bitcoin skeptic Peter Schiff argues that the recent market downturn reveals a myth about strong institutional demand for Bitcoin.
Schiff contends that if there were substantial institutional interest, the Mt. Gox repayments alone wouldn’t cause significant market disruption. He believes that true demand would see buyers eagerly acquiring Mt. Gox’s Bitcoin off the market.
On July 5, Bitcoin dropped to a five-month low of $53,330, coinciding with Mt. Gox moving approximately $2.7 billion worth of Bitcoin to another wallet. Additional bearish pressure came from the U.S. and German governments liquidating their Bitcoin holdings, exacerbating the market crash.
READ MORE: Analyst Warns of Bitcoin Crash if Key Support Level Fails
Despite this, Bitcoin exchange-traded funds (ETFs) offered a ray of hope with $143.1 million in inflows. Schiff, however, remains skeptical, suggesting that Bitcoin ETF buyers are merely holding onto their coins for now and predicting that a more substantial drop in Bitcoin’s price could trigger their capitulation soon.
Nate Geraci, president of The ETF Store, counters this narrative, noting that Bitcoin ETFs have been among the top performers this year. Nevertheless, Schiff insists that all Bitcoin ETF buyers are future sellers and predicts potential lawsuits against ETF issuers due to significant losses.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
