“Smart money is selling,” said Peter Schiff, while dumb money is buying it through ETFs. “They’ve made Bitcoin ETF investors into the bag holders.”
Peter Schiff, an economist and vocal critic of Bitcoin (CRYPTO: BTC), recently expressed concern that ETF investors will bear the brunt of losses.
On Sunday, Schiff appeared on X to share his thoughts on Bitcoin’s current trading patterns and inflows into ETFs, suggesting that “smart money” is selling Bitcoin in the spot market while “dumb money” is buying it through ETFs.
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In what may have seemed like a cheeky remark, Schiff praised big bitcoin investors for labeling ETF investors as bagholders, a financial term for people who hold underperforming assets.
Judging by trading patterns and ETF inflows, it looks like smart investors are selling. #Bitcoin In the spot market, stupid money is buying it through ETFs. Congratulations to the Bitcoin whales for doing this. They #BitcoinETF Investors become bagholders.
— Peter Schiff (@PeterSchiff) July 7, 2024
Schiff’s post comes amid ongoing stress for Bitcoin, exacerbated by the potential sale of billions of dollars worth of KingCrypto by Tokyo-based crypto exchange Mt. Gox.
Schiff said last week that 70% of people who bought spot Bitcoin ETFs when Bitcoin was trading at the $54,000 level lost money. He suggested that a drop below $38,000 would put “100% of Bitcoin ETF buyers” in the red. Schiff expects that this is when the real sell-off will likely begin and most crypto ETF speculators will likely give up.
Despite the biggest market crash on record, 11 U.S.-listed bitcoin spot ETFs recorded net outflows of $143 million last Friday.
Schiff has been vocal in his belief that the crypto bear market is not over yet, predicting further declines in Bitcoin, the world’s largest cryptocurrency.
Price Trends: Bitcoin was trading at $54,694.25 at the time of writing, down 5.64% over the past 24 hours, according to data from Benzinga Pro.
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This article Peter Schiff says, “Smart money is selling and dumb money is buying through ETFs. They’ve made Bitcoin ETF investors the ones holding the bag.” This originally appeared on Benzinga.com.
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