Renowned Economist Warns Of Bitcoin Crash Before Spot ETF Approvals

The entire crypto industry is waiting for the approval of Spot Bitcoin ETFs in the US to upend the market and herald the next extended bullish run for BTX. However, Chief Economist Peter Schiff is of another thought and is of the idea that a BTC price crash is on the horizon even before the SEC gives the green light on spot Bitcoin ETFs. 

Economist Peter Schiff Warns of Potential Bitcoin Crash

Schiff created a poll on social media recently and asked his more than 980,000 followers to vote on a timeline for the next Bitcoin crash. The poll attracted a total of 24,599 votes, with the majority of respondents indicating that they anticipate a decline in price well after spot Bitcoin ETFs are approved. However, a majority (68.1%) choose the “Buy and HODL till the moon” option, indicating the long-term holding sentiment of many BTC traders. 

When will #Bitcoin crash?

— Peter Schiff (@PeterSchiff) November 9, 2023

Schiff disagreed with the outcome of this poll voted on by his followers. The economist is of the notion that the results pointed to a crash before the ETF launch despite the option receiving only 8.9% of votes.

Based on the results my guess is that Bitcoin crashes before the ETF launch. That why the people who bought the rumor won’t actually profit if they wait for the fact to sell.

— Peter Schiff (@PeterSchiff) November 10, 2023

This thought process is definitely not what Bitcoin bulls want to hear right now, as the post attracted comments disagreeing with Schiff. One user stated, “I would say that based on your results 70% of your followers hold #Bitcoin, that should tell you something.”

Why Does Peter Schiff Predict a Crash Before ETF Approvals?

Schiff had made a post last month during Bitcoin’s climb above $30,000 to give some sort of explanation on his thought process. According to him, investors are buying BTC now because they expect more investors to rush in once spot Bitcoin ETFs are approved. But there could be more people waiting to sell and make a profit on the price influx. 

This statement could be somewhat true, as BTC could crash if holders decide to sell their assets during soaring prices. As expected, many investors disagreed with him.

Speculators are buying #Bitcoin now because they think other speculators are waiting to buy a #BitcoinETF. They will soon discover that there are far more speculators waiting to sell then waiting to buy!

— Peter Schiff (@PeterSchiff) October 23, 2023

Schiff has been known to make comments contradicting market sentiment around Bitcoin. A post made as far back as November 2018 showed the economist saying Bitcoin could crash from $3,800 to $750. The cryptocurrency would go ahead to reach $13,000 in the months after.

Don’t make the mistake of thinking that buying #Bitcoin below $3,800 is a bargain just because the current price is better than 80% below its record high. Bitcoin’s price could easily drop another 80% from here, and at $750 it would still be expensive!

— Peter Schiff (@PeterSchiff) November 25, 2018

The Bullish Case For Spot Bitcoin ETFs

With SEC approval of Bitcoin spot ETFs seemingly on the horizon, the bullish case for Bitcoin is building. The introduction of spot ETFs will usher in a new wave of investors and inject new money into BTC that could drive prices far higher long term. 

The SEC has reportedly set a window from November 8 to 17 to decide on applications, but the industry could see the decision delayed until January 2024. 

Bitcoin is trading at $36,990 at the time of writing and is eyeing the next resistance at $37,000.

BTC bulls reclaim $37,000 | Source: BTCUSD on Tradingview.com

Featured image from Investment Monitor, chart from Tradingview.com