Cryptocurrency skeptic Peter Schiff has issued a stark warning to investors involved in Bitcoin exchange-traded funds (ETFs). According to Schiff, the recent drop in Bitcoin’s price to $53,000 has put a significant majority of Bitcoin ETF investors in the red.
“At $53k I estimate over 70% of those who bought Bitcoin ETFs are losing money,” Schiff tweeted. He further predicted a grim outlook for Bitcoin ETF holders should the cryptocurrency’s price continue to decline.
Schiff’s cautionary remarks arrive amidst broader economic uncertainties, including worries over US inflation and interest rates. Bitcoin’s latest price decline follows the collapse of Mt. Gox, with various factors contributing to the downturn.
Schiff noted that if Bitcoin falls below $38,000, he anticipates a complete loss for all Bitcoin ETF buyers, suggesting this could trigger a substantial sell-off among cryptocurrency ETF speculators.
This comes as Bitcoin faces its largest weekly loss since the FTX collapse in November 2022, shedding over 13% of its value in a week and currently trading at levels not seen since early May.
*This article does not constitute investment advice.
