Over $500 million worth of crypto positions were lost in just 24 hours, sending the crypto markets into a tailspin as BTC prices dropped sharply. This has made many investors question the future of their investments, wondering if the correction is as brief as experts have been saying.
What is more scary is that many people didn’t even see this big correction coming. Just when Bitcoin appeared to be stabilizing above $70,000, the market took a nosedive, and it is currently barely holding on to $63,000.
Historically, a Big Correction Possible?
Peter Schiff, a prominent critic of Bitcoin, has warned about the potential for another significant price drop.
Recently, Peter Schiff in his X post warned about a big Bitcoin crash. He says Bitcoin recently dropped 12.9% from its highest peak ever, which was $73,737. He remembers when Bitcoin fell to $16,000 in November 2022. Schiff is also skeptical about the new Bitcoin exchange-traded funds (ETFs) that everyone is talking about. He thinks Bitcoin may soon meet a fatal crash, especially after gaining so much value in 2024.
ETF’s Charm Will Fade Soon
Highlighting the recent market scenario, Schiff noted that Bitcoin has already retraced 15% from its peak of nearly $74,000, despite no outflows from new Bitcoin ETFs, excluding the Grayscale Bitcoin Trust ($GBTC). He speculated on the potential impact of ETF outflows, suggesting that the influx of Bitcoin into ETFs could make the cryptocurrency more susceptible to a catastrophic crash, especially as ETF buyers are typically traders rather than steadfast believers in Bitcoin.
Drawing attention to the historical trend, he said that Bitcoin inventors were glued to social media platforms with “laser eyes” during the peak bull market frenzy in 2011. This trend, which even involved celebrities and politicians, eventually faced mockery as Bitcoin’s price crashed the following year.
Gold’s Resilience vs. Bitcoin’s Vulnerability
Responding to a user’s question about the impact on gold prices if ETFs were to start selling, Schiff expressed confidence in gold’s resilience, citing its ability to reach new record highs despite ETF outflows throughout the year. However, he warned that Bitcoin heavily relies on ETF buying, and any significant ETF selling could trigger a crash due to insufficient buying volume in the spot market to offset the sell-off.
Overall, Schiff has undermined the significance of the most awaited BTC Halving, which will act as a massive bullish catalyst. Currently, BTC is trading at $64,120 as of writing.
