Bitcoin
Bitcoin Crash Exposes Fundamental Myth
Alex Dovbnya
Institutions have not stepped up to buy Bitcoin to avoid the crash, according to Schiff
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Prolific Bitcoin critic Peter Schiff has opined that the recent market sell-off exposes a myth that there is strong institutional demand for the leading cryptocurrency.
The gold bug believes that Mt. Gox refunds alone would not be able to inflict such significant damage if there was substantial institutional buying. “If such demand truly existed, buyers would jump at the chance to buy Mt. Gox Bitcoin off-market,” Schiff said.
As reported by U.TodayThe largest cryptocurrency fell to a five-month low of $53,330 on the Bitstamp exchange on July 5 after Mt. Gox moved approximately $2.7 billion worth of Bitcoin to another wallet. The U.S. and German governments liquidating their Bitcoin holdings was also another bearish headwind that exacerbated the market’s decline.
Will ETF buyers capitulate?
On Friday, Bitcoin exchange-traded funds gave bulls a glimmer of hope with 143.1 million in inflows.
Earlier this week, Schiff claimed that Bitcoin ETF buyers likely held onto their coins based on trading activity. The financial commentator predicted that it would take a much steeper drop in Bitcoin for it to eventually capitulate. Schiff is convinced that such a dramatic price drop could happen as early as this week.
Meanwhile, Nate Geraci, president of The ETF Store, recently slaughtered the narrative that there is no demand for Bitcoin ETFs as they occupy the top spots this year after hundreds of launches.
However, Schiff has previously argued that all Bitcoin ETF buyers are actually future sellers. Furthermore, he predicted that ETF issuers may end up facing lawsuits of buyers due to impressive losses.
About the author
Alex Dovbnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything related to the burgeoning industry — from price analysis to blockchain disruption. Alex has authored over 1,000 stories for U.Today, CryptoComes, and other fintech media outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets, and can be reached at alex.dovbnya@u.today.