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ThecoinrepublicBitcoinPeter Schiff Claims Bitcoin Whales Set Up...
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Peter Schiff Claims Bitcoin Whales Set Up ETF Investors As “Bag Holders”

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Peter Schiff, an economist and a vocal critic of Bitcoin, has recently made some provocative statements about the cryptocurrency and the investors of the Bitcoin Exchange-Traded Fund (ETF). According to Schiff, Bitcoin whales are intentionally selling their BTC while small investors in the ETF will be left holding the bag, which means being stuck with assets that have lost their value.

Whales Dumping Bitcoin Amid Rising ETF Inflows

The criticism Schiff has leveled against Bitcoin is based on the actions of the Bitcoin whales, who are said to be selling large amounts of BTC on the spot market. These actions are in line with the inflows into Bitcoin ETFs, especially from what Schiff calls the “dumb money.” 

The economist makes a clear distinction between this group of investors and what he calls the “smart money,” which are the whales who take advantage of such market movements to dispose off their BTC.

According to recent data, these whales have been actively buying and selling large amounts of BTC. In particular, two major addresses transferred 9,301 BTC to the Binance exchange on July 5, which led to a significant drop in Bitcoin value. Data from Whale Alert, an on-chain transaction tracker, shows more massive Bitcoin transactions and sales, including a $3 billion transaction involving multiple transactions on July 4.

Bitcoin ETFs Attracting Substantial Investment 

Peter Schiff seems quite bearish about the future of Bitcoin ETF, and as per him, investors will not have much to cheer for. However, the market has witnessed good inflows in these products. The largest inflow of $117 million was noted in the Fidelity Bitcoin ETF on Friday, pushing the overall market. 

Another significant participant in the Bitcoin ETF market, Bitwise, also observed high inflows with its ETF, BITB, which has attracted $30 million in investment. That puts the total amount of Bitcoin held by Bitwise to more than 38,000 BTC. Hunter Horsley, CEO of Bitwise, stated that investors have a perfect chance to buy more Bitcoin in the current market condition.

Government and Whales Contribute to Selling Pressure

The current market of Bitcoin depends not only on the activities of whales but also on the actions taken by governments. The German and United States governments have also actively participated in selling a large volume of Bitcoin, which has affected the market’s stability. For instance, the German government has sent massive amounts of funds to cryptocurrency exchanges such as Binance and Coinbase.

According to Arkham Intelligence, the U.S. government sold 237 BTCs earlier seized in a fraud case, which compounded the selling pressure. Such sales backed by the government in conjunction with the actions of the Bitcoin whales have put much pressure on the price of Bitcoin.

Schiff Predicts Potential Capitulation of ETF Investors

Peter Schiff has not changed his stance on Bitcoin and has a negative outlook on the digital currency. He believes that the current Bitcoin ETF investors who remain in the market may experience an even bigger decrease in the value of BTC in the near future. Schiff argues that another massive sell-off could happen in the coming weekend, making the mentioned investors panic and sell.

Schiff’s remarks align with his previous stance that Bitcoin is a volatile and high-risk investment. According to him, the current conditions under which Bitcoin whales are selling their coins put ETF investors in a position to suffer significant losses. 

While institutional investors continue to pour funds into Bitcoin ETFs, the potential for further price declines, driven by whale activity and government sales, remains a critical issue for all market participants to watch closely.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Varuni Trivedi
Varuni Trivedi
Varuni has been in the web3 space for half a decade, witnessing the changing dynamics of DLT, Blockchain and Web3. With 8 years of journalistic expertise, she has a keen interest in emerging technology and their impact on society. She has published news and on-chain analysis articles on Nasdaq as well as some of the top web3, crypto news firms. Currently, she heads The Coin Republic as the Editor-In-Chief.
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