After the spot Bitcoin ETF approval by the SEC, many people in the industry assumed that the approval would boost the price of Bitcoin but it did not happen. Since the spot Bitcoin ETF has been approved, Bitcoin has shown very low performance.
Peter Schiff Chief economist and global strategist at europac.com shared his insight on why Bitcoin is performing at a low price the major reason behind this is people are selling more Bitcoin than buying due to temporary profits and this results in a loss in Bitcoin’s performance.
How Bitcoin ETF Approval Impacted Bitcoin
In a series of tweets, Schiff explained that it is after the effect of approval that, the entry of new Bitcoin ETFs hasn’t led to the anticipated surge in Bitcoin prices. He said people expected that the new ETFs to cause a lot more buying. But it’s being offset by all the selling. Just pointing out where the selling is coming from to offset that buying.
According to him, this is just an initial stage Bitcoin will drop more in the upcoming days and he is optimistic about the resolution of these selling pressures soon.
VanEck on Bitcoin’s Performance
VanEck investment management firm recently made changes to the ETF product line also planning to delist the Bitcoin strategy ETF due to its low performance and warning investors interest.
Anthony Scaramucci, founder of SkyBridge Capital also shared his thoughts on why there is a downturn in Bitcoin’s performance because of selling pressures from GBTC and the fallout from the FTX position. January 16, data indicated that Grayscale Bitcoin Trust (GBTC) transferred 8,730 BTC, valued at approximately $376 million, to Coinbase Prime. Bitcoin is currently trading at $42, 445, but many prominent figures have said that it will bounce back. It recently became the second-largest commodity ETF in the US, surpassing Silver.
Source: https://coinpedia.org/news/peter-schiff-weighs-reason-behind-bitcoins-performance-despite-bitcoin-etf-approval/