Over $500 million worth of cryptocurrency positions were lost in just 24 hours, sending crypto markets into a tailspin as #BTC prices plummeted. That has left many investors questioning the future of their investments, wondering whether the correction will be as short-lived as experts say.
What's even more frightening is that many people didn't even expect such a large correction to occur. Just when Bitcoin seemed to be stabilizing above $70,000, the market fell sharply and is currently barely hanging on at $63,000.
Is a historically major correction possible?
Peter Schiff, a prominent Bitcoin critic, has warned of the possibility of another significant price drop.
Peter Schiff recently warned of a major crash #BTC in his post X. He says Bitcoin recently fell 12.9% from its all-time high of $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 believes Bitcoin could soon suffer a fatal crash, especially after rising so much in value in 2024.
The allure of ETFs will soon fade
Covering the recent market scenario, Schiff noted that Bitcoin has already pulled back 15% from its peak of nearly $74,000, despite no outflows from new Bitcoin ETFs, with the exception of the Grayscale Bitcoin Trust ($GBTC). He speculated about the potential impact of ETF outflows, suggesting that an influx of Bitcoin into ETFs could make cryptocurrencies more susceptible to a catastrophic crash, especially given that ETF buyers tend to be traders rather than hardcore Bitcoin advocates.
Pointing to a historical trend, he said Bitcoin's inventors had “laser eyes” on social media platforms during the peak of the bull market frenzy in 2011. The trend, which even included celebrities and politicians, eventually faced ridicule as Bitcoin's price collapsed the following year.
Gold's Resilience Compared to Bitcoin's Vulnerability
In response to a user's question about the impact on gold prices if ETFs start selling, Schiff expressed confidence in gold's resilience, citing its ability to reach new all-time highs despite ETF outflows throughout the year. However, he warned that Bitcoin is heavily dependent on ETF buying, and any significant ETF selling could trigger a crash due to insufficient spot market buying to offset the sell-off.
Overall, Schiff undermined the most anticipated BTC halving, which would serve as a powerful bullish catalyst.
