Peter Schiff has hung up his Bitcoin-criticism boots today to go after Ethereum. Schiff believes that if the US Securities and Exchange Commission approves spot Ethereum ETFs, BTC will encounter several negative developments.
The popular gold enthusiast Peter Schiff continues to attack Bitcoin, but his latest warning came during a price recovery as the crypto soared beyond $70,000.
Also Read: Peter Schiff Tired of Traders Accusing Him of Using Bitcoin to Chase Clout
At the same time, Ether crossed $3,700, slightly pushed higher to $3,744.53 at the time of writing. This represents a 19.4% increase from yesterday. The price is also 29.5% higher now than it was seven days ago.
Peter Schiff Gives Bitcoin a Rest, Shifts Gears to Ethereum
Peter Schiff, who has consistently expressed skepticism towards Bitcoin, dampened the spirits of BTC holders by suggesting that the potential approval of Ethereum ETFs could have negative implications for the leading crypto coin.
#Bitcoin gained renewed strength from rumors that an #Ethereum ETF will likely be approved. But any money to buy new Ether ETFs will most likely come from existing Bitcoin ETFs. Investors who decided to make an allocation to #crypto won’t increase that allocation to buy Ether.
— Peter Schiff (@PeterSchiff) May 21, 2024
Spot ETFs took center stage in the crypto industry this year following the SEC’s approval of nearly a dozen BTC products in mid-January. This marked a significant shift after a decade of consistently rejecting or delaying all applications.
Other countries and particular territories, such as Hong Kong, have also taken similar actions. However, the United States continues to be the largest market. As a result, all attention is focused on the regulatory agency to determine if the SEC will grant another asset the same validation.
As the second-largest cryptocurrency by market cap, Ether naturally finds itself at the forefront of this trend. Nevertheless, the Commission has already postponed deciding on several Ether ETF applications this year, and the likelihood of approval in the near future is relatively low.
However, their slim chances took a sudden turn yesterday, as Bloomberg’s ETF experts significantly increased their prediction approval percentages for May from 25% to 75%.
Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied). See… https://t.co/gcxgYHz3om
— Eric Balchunas (@EricBalchunas) May 20, 2024
Within minutes, the underlying asset experienced a rapid surge of 10% and later 20%, reaching a multi-week high of over $3,800 earlier. On the other hand, the price of BTC experienced a significant increase, rising from under $67,000 to around $72,000. This marked a 6-week peak for the crypto.
Crypto Traders Have Something to Remind Schiff
Before BTC enthusiasts, investors, or HODLers become upset or concerned about Schiff’s remarks, it is essential to consider his track record and success rates in criticizing the asset.
Peter has been expressing concerns about Bitcoin for years, consistently cautioning about possible bubbles and advising investors to steer clear. However, his track record of successful warnings is quite limited.
One trader on X by the tag @rajatsonifnance had this to tell Schiff: “Peter… Bitcoin’s price doesn’t go up because of Ether. Ether’s price goes up because of Bitcoin. If you don’t understand this, your opinion is irrelevant.”
One trader on X by the tag @The_Old_Taylor told Schiff, “No, Peter. Bitcoin’s price was suppressed because of the news that an ETH ETF would likely be approved.” She added, “The pump was coming because the 90-day pause on trading the new bitcoin ETFs came to an end today, and there were/are plenty of shorts to be liquidated.”
Ethereum Investors Rake in Profits
According to a tweet from IntoTheBlock, 90% of market players holding ETH are currently profitable, with the remaining 10% in the red. As of this writing, no ETH holder is losing money.
This large increase has resulted in profits for the vast majority of ETH holders. Similar trends were observed in Ethereum on-chain indicators around two months ago, immediately after the Dencun update.
Ether’s explosive move to $3600+ puts 90% of $ETH holders in profit. pic.twitter.com/ExkqY89OD1
— IntoTheBlock (@intotheblock) May 21, 2024
Meanwhile, analysts anticipate that ETH might reach $4,000 within a few days if the ETFs are approved. This move could push the asset closer to shattering its all-time high of $4,891.
Cryptopolitan Reporting by Florence Muchai
