According to U.Today, Peter Schiff, a well-known critic of Bitcoin, anticipates that the recent negative flows in Bitcoin ETFs could exert downward pressure on the cryptocurrency's price. Schiff, often referred to as 'Dr. Doom', suggests that the current imbalance in the Bitcoin ETF market, characterized by a surplus of investors and a dearth of buyers, could be detrimental to Bitcoin's price performance.
Schiff noted that when Bitcoin ETFs were launched four months ago, there were only buyers and no sellers. However, with the increase in the number of investors owning these ETFs, the potential supply of sellers has grown significantly. Coupled with a decrease in demand from new buyers, Schiff predicts that ETF outflows could soon exert significant downward pressure on Bitcoin's price.
The launch of spot Bitcoin ETFs in the U.S. in January was marked by an opposite scenario, with only buyers and no sellers. However, as interest in buying these ETFs has stagnated, this imbalance could result in significant pressure on Bitcoin's price in the short term. Over the last 10 days, Bitcoin ETFs in the U.S. have seen an outflow of $230 million. On May 1, the sector experienced its 'worst day', with $563.7 million erased in 24 hours, coinciding with a 5% drop in Bitcoin's price from $63,000 to below $60,000.
The nature of the first generation of Bitcoin ETF holders is a topic of ongoing discussion. Some analysts believe that the segment was initially entered by 'paper hands', or less confident investors, while more confident holders are yet to come. Yesterday, spot Bitcoin ETFs registered a minor outflow of $11.3 million, according to CoinGlass data. While most funds showed positive dynamics, GBTC lost $43.4 million. At the time of reporting, Bitcoin was trading at $60,900, down almost 1% in the last 24 hours.