Renowned economist and persistent cryptocurrency critic Peter Schiff has issued a dire warning to those investing in Bitcoin exchange-traded funds (ETFs). Schiff emphasized that the recent drop in Bitcoin’s price to $53,000 has resulted in substantial losses for a significant majority of Bitcoin ETF investors.
“Currently, at $53k, I estimate that over 70% of Bitcoin ETF holders are in the red,” Schiff stated firmly on Twitter.
The outspoken critic went further to predict a bleak future for these investors should Bitcoin’s price continue to decline.
“When Bitcoin slips below $38k, every single buyer of Bitcoin ETFs will be facing losses. This scenario, in my view, will trigger a massive sell-off, with most speculative investors abandoning crypto ETFs for good,” Schiff added.
Bitcoin’s recent price decline follows the news of Mt. Gox’s settlement with creditors, alongside broader economic uncertainties such as rising US inflation and interest rate concerns.
Schiff’s comments come amid Bitcoin’s most significant weekly loss since the collapse of FTX in November 2022, with the cryptocurrency shedding over 13% of its value this past week and currently trading at its lowest levels since early May.
*This article does not provide investment advice.
