Peter Schiff Analyzes the Factors Influencing Bitcoin’s Performance Despite the Approval of a Bitcoin ETF
After the approval of the spot Bitcoin ETF by the SEC, there were high expectations that the price of Bitcoin would increase. However, contrary to these expectations, Bitcoin has actually experienced a significant decline in performance.
Peter Schiff, the Chief Economist and Global Strategist at europac.com, offered his insight on why Bitcoin is struggling. He believes that the main reason for this is that people are selling more Bitcoin than they are buying, driven by the desire for temporary profits. This continuous selling pressure has ultimately resulted in the decline in Bitcoin’s performance.
Schiff took to Twitter to explain why the approval of Bitcoin ETFs has not had the desired effect on its price. He pointed out that the outflows from the Grayscale Bitcoin Trust (GBTC), along with the selling of Bitcoin, outweigh the inflows from all the other ten Bitcoin ETFs combined. As a result, he predicts that once the initial demand for ETFs diminishes, there will be an even larger drop in the price of Bitcoin.
Schiff believes that this is just the beginning, and Bitcoin will experience further declines in the coming days. However, he remains optimistic that these selling pressures will eventually resolve.
VanEck, an investment management firm, has also made changes to its ETF product line. They plan to delist the Bitcoin Strategy ETF due to its poor performance and lack of investor interest.
Anthony Scaramucci, the founder of SkyBridge Capital, shares a similar perspective on the downturn in Bitcoin’s performance. He attributes it to selling pressures from GBTC and the fallout from the FTX position. Recent data showed that GBTC transferred a significant amount of Bitcoin to Coinbase Prime, indicating the selling pressure in the market.
Despite the current decline, many prominent figures in the industry remain confident that Bitcoin will bounce back. It has recently become the second-largest commodity ETF in the US, surpassing Silver.
In summary, the approval of the spot Bitcoin ETF has not had the expected positive impact on Bitcoin’s price. Selling pressures from various sources, including GBTC, have outweighed the buying demand from new ETFs. This has resulted in a decline in Bitcoin’s performance. However, experts remain hopeful that these selling pressures will eventually subside, leading to a recovery in Bitcoin’s price.