The entire crypto industry waiting for the approval of Spot Bitcoin ETFs in the US to rock the market and usher in the next longer bullish run for BTX. However, Chief Economist Peter Schiff has a different view and believes a BTC price crash is on the horizon even before the SEC greenlights spot Bitcoin ETFs.
Economist Peter Schiff warns of a possible Bitcoin crash
Schiff recently created a social media poll and asked his more than 980,000 followers to vote on a timeline for the next Bitcoin crash. The poll attracted a total of 24,599 votes, with the majority of respondents saying they expect a price drop long after spot Bitcoin ETFs are approved. However, a majority (68.1%) choose the “Buy and HODL to the Moon” option, reflecting the long-term sentiment of many BTC traders.
When will #Bitcoin Crash?
— Peter Schiff (@PeterSchiff) November 9, 2023
Schiff disagreed with the outcome of this poll voted on by his followers. The economist believes the results pointed to a crash before the ETF’s launch, despite the option receiving just 8.9% of the vote.
Based on the results, I suspect Bitcoin will crash before the ETF launch. That’s why the people who bought the rumor won’t really benefit from waiting for the fact to be sold.
— Peter Schiff (@PeterSchiff) November 10, 2023
This thought process is definitely not what Bitcoin bulls want to hear right now, as the post drew comments that disagreed with Schiff. One user said: “I’d say based on your results 70% of your followers own #Bitcoin, that should tell you something.”
Why is Peter Schiff predicting a crash before ETF approvals?
Schiff had posted last month during Bitcoin’s climb above $30,000 to provide some sort of explanation about his thought process. According to him, investors are buying BTC now because they expect more investors to rush in once Bitcoin ETFs are approved. But there could be more people waiting to sell and make a profit on the price inflow.
This statement could be somewhat true as BTC could crash if holders decide to sell their assets during rising prices. As expected, many investors disagreed with him.
Speculators buy #Bitcoin now because they think other speculators are waiting to buy a #BitcoinETF. They will soon discover that there are many more speculators waiting to sell than there are to buy!
— Peter Schiff (@PeterSchiff) October 23, 2023
Schiff has been known to make comments that contradict market sentiment surrounding Bitcoin. A November 2018 post showed the economist saying Bitcoin could crash from $3,800 to $750. The cryptocurrency would reach $13,000 in the following months.
Don’t make the mistake of thinking that buying #Bitcoin under $3,800 is a bargain, just because the current price is better than 80% below its all-time high. Bitcoin’s price could easily drop another 80% from here, and at $750 it would still be expensive!
— Peter Schiff (@PeterSchiff) November 25, 2018
The Bullish Case for Spot Bitcoin ETFs
With SEC approval of Bitcoin spot ETFs seemingly on the horizon, the bullish case for Bitcoin continues to grow. The introduction of spot ETFs will usher in a new wave of investors inject new money in BTC, which could drive prices much higher in the long run.
The SEC did that reportedly installed a window from November 8 to 17 to decide on applications, but the industry could see it decision postponed until January 2024.
Bitcoin is trading at $36,990 at the time of writing and is looking at the next resistance at $37,000.
BTC bulls reclaim $37,000 | Source: BTCUSD on Tradingview.com
Featured image from Investment Monitor, chart from Tradingview.com