Bitcoin skeptic Peter Schiff: 70% of BTC ETF investors are in the loss zone

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What’s new? Peter Schiff, the head of the brokerage company Euro Pacific Capital known for his skeptical attitude to bitcoin, has voiced a new prediction about the market of spot exchange-traded funds (ETFs) based on the first cryptocurrency amid a sharp drop in its rate below $60 000.

Source: X.com

What else is known? The senior executive believes that already at the price of bitcoin at the level of $54 000, more than 70% of unit holders of spot BTC ETFs lose money. According to Schiff, when the price drops below $38 000, 100% of holders will start losing money:

“That’s when I expect the real selling to start, as most crypto ETF speculators will throw in the towel for good.”

One user joined the discussion, recalling that in April, Michael Saylor, the head of the board of directors of the analytics software company MicroStrategy, borrowed $1 billion to buy BTC when the exchange rate was at $66 000. MicroStrategy began actively buying bitcoin several years ago and is now one of the largest holders among publicly traded companies.

To this, Schiff responded that Saylor would have to borrow even more money to buy bitcoin and thus maintain the exchange rate.

Source: X.com

Another user pointed out that even in the event of a collapse below $35 000, bitcoin would retain an advantage over gold, which has held on for all of the 15 years since its inception — probably talking primarily about yield.

In response, Schiff argued that it does not matter because most current holders did not buy the asset when it was created, but much later. Furthermore, he believes that most holders bought BTC at prices above current prices and are therefore in the loss zone, while most gold holders are in the profit zone.

Source: X.com

A little earlier, Schiff also noted that the drop in BTC relative to the all-time high recorded in March was 27,5% in dollars and 38,5% in gold.

“This bear market is a long way from over. Don’t say I didn’t warn you,” he concluded.

Source: X.com