Market Analysts Send Downward Signals To Crypto Assets

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Bitcoin Faces Threat As Spot Ethereum ETF Debuts: Peter Schiff – Crypto News

Published

2 years ago

July 23, 2024

Dripp

In a recent warning towards the crypto market, Peter Schiff says that Bitcoin faces a new threat as Spot Ethereum ETFs begin trading in the U.S. Schiff, known for his anti-BTC stance, has sparked significant debate among investors with his recent statements, highlighting potential shifts in market dynamics. Notably, the launch of Ether ETFs is seen as a game-changer by many, drawing substantial investor attention.

Peter Schiff Sounds Alarm Amid Spot Ethereum ETH Launch

Peter Schiff, a well-known Bitcoin skeptic, has issued a stark warning about the implications of Ether ETFs. In a recent post on X, he noted that the introduction of multiple Ethereum ETFs is a critical event for the cryptocurrency market.

According to him, the market could experience a “buy the rumor, sell the fact” scenario for Ether, which could impact ETH’s performance in the coming days. In addition, he highlighted that the advent of Spot Ethereum ETFs might lead to a bearish trend for BTC, as investors would reallocate their funds.

Meanwhile, the quick uptake of Ether ETFs supports Schiff’s concerns. Bloomberg’s senior ETF analyst, Eric Balchunas, reported an impressive $461 million trading volume within the first 90 minutes of launch. This substantial interest suggests that ETH ETFs are rapidly gaining traction, potentially at the expense of BTC.

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What’s Next For Bitcoin?

The market’s reaction to Ethereum ETFs has been swift and significant. Experts like Anthony Pompliano believe that while Ether ETFs will boost ETH prices, the overall impact might be more subdued compared to U.S. Spot Bitcoin ETFs. Pompliano suggests that investors will likely use Spot Ethereum ETFs to diversify their portfolios, possibly adopting a 70/30 split between BTC and ETH.

Meanwhile, this diversification strategy is appealing to Wall Street, which typically prefers holding a mix of assets. The rapid uptake of Ether ETFs indicates that investors are eager to explore this new avenue. However, the true long-term impact of Bitcoin remains uncertain.

Notably, Schiff’s warning highlights a pivotal moment for the cryptocurrency market. As investors weigh their options, the competition between BTC and ETH is poised to intensify. Ethereum’s growing appeal could challenge the flagship crypto’s dominance, leading to significant market shifts.

Despite that, the recent robust outflow and rumors over Donald Trump announcing Bitcoin as a strategic reserve asset in the US have made BTC more appealing to traders. Having said that, if the rumors hold true, it could potentially boost BTC’s performance.

Meanwhile, as of writing, BTC price was down 2% and traded just above the $66K mark, with its trading volume declining 26%. On the other hand, Ethereum price dipped 1.4% to $3,412, despite the hefty inflow noted just after the ETF debut on Wall Street.

Besides, BTC Futures Open Interest (OI) also fell over 2.5%, indicating that the market is taking a cautious stance before putting further bets into the flagship crypto.

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