In just 24 hours, more than $500 million in cryptocurrency positions were lost, and the cryptocurrency market plummeted as the price of BTC plummeted. This has left many investors questioning the future of their investments and wondering if the correction will be as brief as experts say.
What’s scarier is that many people didn’t even see this major adjustment coming. The moment Bitcoin stabilized above $70,000, the market plummeted and is currently barely maintaining $63,000.
Are major historical corrections possible?
Peter Schiff, a prominent critic of Bitcoin, warned of the possibility of another significant price decline.
Recently, Peter Schiff warned of a massive Bitcoin crash in his X post. He said Bitcoin was down 12.9% from its recent all-time high of $73,737. He remembers when Bitcoin fell to $16,000 in November 2022. Schiff is also skeptical about the new Bitcoin exchange-traded fund (ETF) everyone is talking about. He believes that Bitcoin will soon face a catastrophic collapse, especially after gaining enormous value in 2024.
The appeal of ETFs will soon fade
Highlighting the recent market scenario, Schiff pointed out that Bitcoin has already recovered 15% from its nearly all-time high of $74,000 despite no outflows from new Bitcoin ETFs except Grayscale Bitcoin Trust ($GBTC). He speculated about the potential impact of ETF outflows, suggesting that Bitcoin inflows into ETFs could make the cryptocurrency more vulnerable to a catastrophic collapse. Especially since ETF buyers are typically traders rather than firm believers in Bitcoin.
Noting historical trends, he said Bitcoin’s inventors were glued to the social media platform with ‘laser eyes’ during the peak bull market frenzy of 2011. This trend, which included celebrities and even politicians, was eventually met with ridicule as the price of Bitcoin plummeted. the next year.
Gold’s Resilience and Bitcoin’s Vulnerability
In response to a user’s question about the impact on gold prices if ETF sales begin, Schiff expressed confidence in gold’s resilience, citing gold’s ability to reach new record highs despite ETF outflows throughout the year. However, he warned that Bitcoin relies heavily on ETF buying, and significant ETF selling could trigger a collapse as there is not enough buying in the spot market to offset the selling.
Overall, Schiff undercuts the significance of the most awaited BTC halving, which will act as a huge bullish catalyst. Currently, BTC is trading at $64,120 at the time of writing.