Peter Schiff: ETF Bitcoin As The Rescuer Of The Crypto Market Is A Mistake

Peter Schiff; ETF Bitcoin as the savior of the crypto market is a mistake (Photo; Doc. Newsbtc)

JAKARTA - Peter Schiff, a leading figure and gold supporter, gave a serious warning to Bitcoin investors. Through his social media account, Schiff stated that confidence in Bitcoin's exchange-traded fund (ETF) product as a crypto market savior is a mistake. According to him, institutional buyers from the Bitcoin ETF will not be strong enough to stabilize this volatile market.

Schiff argues that the presence of ETF buyers will only add to the instability of the crypto market. He believes that ETF buyers, who will eventually become sellers, are different from spot buyers who have the intention of holding long-term Bitcoin instead of fiat currency.

Bitcoin prices today experienced a drastic drop, hitting an intraday low of 66,207 US Dollars (approximately Rp1,078 billion), with a drop of more than 5% from the previous value. In the previous week, Bitcoin did not make it to the level of US$72,000 (approximately Rp1.17 billion) despite a significant buy-out boost following the release of US job data.

A report from U.Today states that US-based spot Bitcoin ETF experienced its second-largest inflow last Tuesday. However, positive trends over 19 consecutive days have now stalled. The ETF product experienced an outflow of nearly 65 million US Dollars (approximately Rp1.05 trillion). BlackRock's IBIT only recorded a moderate inflow of 6.3 million US Dollars (approximately Rp102 billion), which was not enough to stabilize the market.

Bitcoin volatility is expected to increase ahead of the release of the US consumer price index (CPI) report for May. This much-awaited inflation report will provide important indications of the upcoming Federal Reserve's monetary policy. The inflation rate is higher than expected to put bearish pressure on Bitcoin.

The Federal Reserve is also scheduled to announce their interest rate decisions on the same day. However, the market does not expect any additional turmoil as interest rates are expected to remain stable.