A sudden spike in Bitcoin's price to near $48,000 was abruptly followed by a plunge to around $45,000, after a post by a hacked SEC Twitter account falsely announced the approval of Bitcoin ETFs.
Renowned Bitcoin and crypto skeptic Peter Schiff has chimed in with a cautionary warning on the situation. Schiff suggests that with the market's anticipation of an actual Bitcoin ETF approval looming, the recent volatility might be a precursor to a more substantial market disappointment.
He posits that the hack-induced spike and subsequent correction may not be an isolated incident and that the market's tendency to defy speculative expectations could mean that the actual approval, if it happens, will not necessarily translate into the bullish run investors are hoping for.
Schiff's advice to investors is to consider selling today, rather than waiting for the market to potentially "disappoint" upon the real news. This stance, while typically bearish and in line with Schiff's overall sentiment toward Bitcoin, may resonate with traders who try to avoid unnecessary risks.
Alex DovbnyaSchiff's warning points to the possibility of an "overbought" scenario where the hype leading up to the approval has already been priced in, and the actual event could trigger profit-taking rather than further buying.
The underlying message in Schiff’s warning is one of caution. Traders and investors might do well to consider the preexisting market dynamic and the fact that the crypto market has often moved counter to the majority's expectations, especially in the context of high-stakes regulatory developments.
The next few days could prove to be a critical test of whether Bitcoin can sustain its rally after the approval of the long-awaited product or, as Schiff suggests, the market is setting up for a letdown.
Godfrey Benjamin
Tomiwabold Olajide
Dan Burgin
U.Today Editorial Team
Vladislav Sopov