Peter Schiff doubts BTC investors will ‘hodl’ after ‘long weekend’

Economist and cryptocurrency critic Peter Schiff recently shared his views on the recent introduction of Bitcoin (BTC) exchange-traded funds (ETFs) in the U.S. market.

Schiff’s remarks came as the Bitcoin price nosedived shortly after the launch of 11 Bitcoin ETFs, wiping out most of the gains of 2024. 

The media personality’s perspective, shared on his social media account on Jan. 13, suggests that the initial investors of these ETFs may be ruining their decisions.

The Bitcoin price plunge, dropping from $49,000 to below $42,000 in less than 24 hours, resulted in a swift double-digit decline for its holders. 

The price dip, according to SkyBridge Capital founder Anthony Scaramucci, was significantly impacted by the sell-off of Grayscale Bitcoin Trust (GBTC) shares.

Despite the initial setback, Bitcoin showcased resilience, rebounding to trade over $42,500 on major exchanges. However, the sustainability of this recovery remains uncertain.

Schiff pointed out that the first wave of ETF investors likely faced regret as ETF trading was not available over the weekend, leaving them in a vulnerable position amidst the market downturn.

However, his comments did not go unchallenged. An X user, going by the handle @zacguignard, reminded Schiff that Bitcoin investors had held their nerves and their coins when the cryptocurrency was trading at $15k, assuring him that the current dip wouldn’t phase them.

Another user, @IncomeSharks, stated that the current Bitcoin price was 100 times higher than it was when Schiff first started his criticism of the cryptocurrency.

The latest dig is not the first time Schiff has had a go at Bitcoin ETF investors since the U.S. Securities and Exchange Commission (SEC) approved the investment instruments. 

On Jan. 10, he took to X to express his concerns over the increasing Bitcoin speculation. He suggested that the SEC’s approval of spot Bitcoin ETFs had only added “eleven new ways for speculators to place their bets.”

The larger implications of the Bitcoin ETF launch are currently a hotly debated topic among experts. Some, like BitMEX founder Arthur Hayes, are apprehensive that Bitcoin may begin to mirror a traditional financial asset, thereby losing some of its unique appeal.