Peter Schiff Says Bitcoin ETF Buyers 'HODLing' Amid King Crypto's Plunge But Warns 'Much Larger Drop ... May Come As Soon As Next Week'

Bitcoin BTC/USD plummeted to an intraday low of $53,717.38, marking the lowest in more than four months, on Friday amid concerns about supply from failed Tokyo-based cryptocurrency exchange Mt. Gox. In the aftermath of the plunge, gold bull Peter Schiff suggested that the downtrend will likely accelerate.

What Happened: Seventy percent of those who bought spot Bitcoin ETFs are losing money when the apex crypto trades at $54,000 level, said Schiff in a post on X, formerly Twitter. A decline below $38,000 will push “100% of Bitcoin ETF buyers” into the red, he said.

“That’s when I expect the real selling to start, as most #crypto ETF speculators will throw in the towel for good,” the economist said.

At $54K my guess is that over 70% of those who bought #BitcoinETFs are losing money. When #Bitcoin trades below $38K, 100% of Bitcoin ETF buyers will be losing money. That's when I expect the real selling to start, as most #crypto ETF speculators will throw in the towel for good.

— Peter Schiff (@PeterSchiff) July 5, 2024

As Bitcoin recovered from Friday’s lows, Schiff said it appeared that Bitcoin ETF buyers were still “HODLing” and there was no sign of panic.

“It will likely take a much larger drop in #Bitcoin before they finally capitulate. That may come as soon as next week, especially after another big selloff this weekend,” he added.

See Also: How To Buy Bitcoin (BTC)

Why It’s Important: Bitcoin’s downtrend was in defiance of the equity market rally, which has pushed the major U.S. indices to record highs. Some analysts attribute the pullback to the U.S. election uncertainty, with both major parties not too crypto-friendly.

Bitcoin scaled a high of $73,750.07 on March 14 amid a renewed push higher after a soft patch in the aftermath of the spot Bitcoin ETF approval.

Crypto analyst Ali Martinez said in a post on Friday that the apex crypto currently lacks significant support.

“The main key demand wall is around $47,000, and for the bull run to resume, $BTC must close and hold above $61,000,” he said.

At last check, Bitcoin climbed 2.42% to $56,806.82, according to Benzinga Pro data.

Read Next:

• Impact Of Mt Gox, Germany Sales On Bitcoin: ‘Lettuce Hands Are Flushed Out’

Photo: Shutterstock