Bitcoin
Explains how Ethereum ETFs will be bad for Bitcoin
The popular gold bug continues its barrage against bitcoin, but its latest warning comes amid times of price resurgence as the cryptocurrency has soared above $70,000.
In fact, Schiff thinks a lot of bad news will hit BTC if the US Securities and Exchange Commission actually gives the green light to identify Ethereum ETFs.
Schiff goes after Bitcoin again
Spot ETFs have become top news in the cryptocurrency industry this year after the US SEC approved nearly a dozen such BTC products in mid-January, following a decade of rejecting or delaying all applications. Other countries and special territories like Hong Kong have followed suit, but the US remains the largest market; therefore, all eyes are on the regulatory agency to see if another asset will receive such validation.
As the second largest cryptocurrency by market value, Ethereum is predictably at the forefront of this trend. However, the Commission has already delayed decision-making on several ETH ETF applications this year, and the chances of approval soon are greatly slim. Or they were quite scarce until yesterday, when ETF experts at Bloomberg created its forecast approval percentages in May from 25% to 75%.
In a matter of minutes, the underlying asset exploded by 10% and later by 20%, reaching a multi-week high of more than $3,800 previously. However, the price of BTC also emerged from less than $67,000 to around $72,000 – a 6-week high of its own.
Peter Schiff, known for his constant stance against bitcoin, has poured some cold water on BTC holders, indicating that a possible approval of Ethereum ETFs is actually bad news for the largest cryptocurrency.
Not so fast
Before any BTC fans, investors, or HODLers get angry or worried about Schiff’s comments, they should be aware of his past and success rates when it comes to destroying the asset. It has been critical of it for years, constantly issuing warnings about potential bubbles and how investors should stay away. However, its successful warnings are rare.
For example, less than a month ago, he used another BTC correction to forecast even more pain for the bulls. At the time, BTC fell to $63,000 and warned that if Bitcoin falls below $60,000, there will be a “long road down.”
The asset did drop below $60,000, but only briefly. Instead of going that long way, it recovered and now trades above $70,000.