Spot Bitcoin ETF Investors Displays Resilience Amid Market Instability
In the event that spot ETF investors choose to sell rather than purchase when the trading begins, Schiff believes that liquidation may flood the spot markets. However, hours after the spot market closed, the gold advocate cited strong confidence among investors, noting that the crash yesterday was not big enough to disrupt them.
The post read:
Today’s crypto crash wasn’t big enough to shake the confidence of ETF investors. However, their resolve will be tested soon. Capitulation is needed to form a short-term bottom.
He further predicted Bitcoin to reach $20,000, in response to a commenter. According to Schiff, the aforementioned $38,000 is the price break that sets off major liquidations, not the short-term bottom. Thus, he expects BTC to drop below $20,000 for the short-term bottom.
Recent Crash Proves BTC’s Unreliability As A Strategist Reserve Asset
The economist’s belief that BTC will never be accepted as a reserve asset is due to the high volatility of the digital currency. This is because a reserve asset must be easily sold when necessary and cannot lose more value than the assets it is meant to protect.