Peter Schiff Predicts Bitcoin Will Drop Even Worse

Peter Schiff said Bitcoin is in the bearish market. (Photo; Doc. CoinColic)

JAKARTA - Peter Schiff, a gold supporter and crypto skeptic, recently expects greater losses to Bitcoin spot exchange-traded funds (ETFs) that have been released to the public. He shared his views through several posts on social media platform X this week.

The price of bitcoin flew over $47,000 per coin ahead of the ETF approval from the US Securities and Exchange Commission (SEC) in early January. But unfortunately, the price of BTC began to fall after the spot's Bitcoin ETF was approved by regulators. BTC fell to a level below 40,000 US dollars per coin. At the time of writing, Bitcoin is trading at the level of $39,000 or equivalent to Rp627 million per coin at 15:58 WIB, January 24, 2024.

"All bitcoin spot ETFs are now in the [phase] bear market, which is defined as a 20% decrease or more than a peak," Schiff said.

He added that FBTC investment products have fallen 32 percent. For information only, FBTC (Fidelity Wise Origin Bitcoin Fund), Bitcoin's ETF investment product from leading asset manager company Fidelity.

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In a follow-up post, he wrote, "The Bitcoin Strategy PROshares ETF, which tracks bitcoin futures, launched in October 2021. BITO started trading at $40.88. So far, today's lowest level is $19, down more than 50% in more than two years. I think those who bought one of the 11 bitcoin spot ETFs will experience worse results." When this writing was created, BITO was traded at $19.04, down nearly 52% since its launch.

After the price of bitcoin fell below $39,000 on Tuesday, Schiff explained through his upload on X: "The new bitcoin ETF doesn't create any additional [bitcoi] requests, but only moves demand. Investors who have purchased actual bitcoin, bitcoin-related equity such as MSTR [Microstrategy] shares, or GBTC [Grayscales bitcoin trust] are now only buying the new ETF. Setting seats on the deck will not stop the ship from sinking."

Schiff added, "One of the biggest losses of this new bitcoin ETF is COIN [Coinbase shares]. Although Coinbase stores bitcoin held in this ETF, the speculator who used to transact bitcoin through Coinbase is now transacting with ETFs. Also, many are buying COIN as a bitcoin proxy now [starts] buying ETF."