The ongoing price crash in the cryptocurrency market has sparked a heated debate between gold bug Peter Schiff and Bitcoin enthusiasts. Schiff, known for his controversial market commentary, recently took another jab at struggling Bitcoin ETF offerings, pointing out a major flaw that has left buyers feeling trapped in the middle of the crash.
Unlike the global and 24/7 operation of the Bitcoin market, Bitcoin ETF liquidity is limited to US market hours. This means that when the market crashes overnight, ETF buyers are unable to sell and must wait until the market reopens in the morning. With the price of Bitcoin hovering dangerously close to dropping below $60,000 and over half a billion dollars liquidated in the last 24 hours, the cryptocurrency market is facing a grim outlook.
Adding to the bearish sentiment is the significant outflows from Bitcoin ETFs and the looming rate cut decision by the Federal Reserve. Despite the market turmoil, Schiff remains adamant in his criticism of Bitcoin, claiming that gold does not experience the same overnight crashes as its digital counterpart.
However, ETF analyst James Seyffart has countered Schiff’s argument, pointing out that the issue of being unable to exit the market during crashes is not exclusive to Bitcoin ETFs. Similar challenges exist for gold-based ETFs and international equity ETFs, with market-moving events occurring when trading is unavailable.
As the debate rages on, it is clear that the volatility in the cryptocurrency market is causing concern among investors and analysts alike. With the Bitcoin price plummeting nearly 20% from its recent high, the future remains uncertain for both Bitcoin and its ETF offerings.
