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Peter Schiff Names Key Reason Behind Bitcoin’s Underperformance

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Thu, 18/01/2024 - 8:16
 Peter Schiff Names Key Reason Behind Bitcoin’s Underperformance
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In a series of social media posts, Peter Schiff, a well-known critic of Bitcoin, opined on the reasons behind the cryptocurrency's recent underperformance. He pointed to the dynamics between Bitcoin exchange-traded funds (ETFs) and market selling pressures. 

The impact of new ETFs 

Schiff pointed out that the introduction of new Bitcoin ETFs hasn't led to the expected surge in Bitcoin prices. 

Instead, the inflows into these ETFs have been counterbalanced by significant outflows from Grayscale's Bitcoin Trust (GBTC) and direct selling of Bitcoin. 

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Schiff argues that this trend could lead to an even more significant price drop once the initial demand for these ETFs diminishes. 

Anthony Scaramucci, founder of SkyBridge Capital, attributes the current downturn in Bitcoin partly to selling pressures from GBTC and the fallout from the FTX position.

However, he remains optimistic about the resolution of these selling pressures in the near future. 

Notably, on January 16, data revealed that Grayscale Bitcoin Trust (GBTC) transferred 8,730 BTC, valued at approximately $376 million, to Coinbase Prime.

Siding with Dimon 

Schiff also agreed with Jamie Dimon’s skepticism about Bitcoin, stating, "Jamie Dimon is correct that Bitcoin has no value." 

He further criticized the comparison of Bitcoin to gold, arguing, "Bitcoin has none of gold's unique properties that make it such a valuable and useful metal." 

This echoes Dimon's recent advice on CNBC, where he cautioned potential investors, saying, "My personal advice is don't get involved."

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