Bitcoin Miners Sell While ETF Investors Get Trapped Amid Market Crash

Bitcoins and its all-time high chart

Bitcoin (BTC) is experiencing a significant price decline, and gold backer Peter Schiff has reignited discussions among cryptocurrency aficionados. This time, he criticized US-based spot Bitcoin ETFs, alleging that their purchasers are compelled to “desperately watch” during collapses owing to restricted liquidity in comparison to the global Bitcoin market, which operates 24/7.

ETF Investors Caught in Market Crash

Unlike the worldwide Bitcoin market, which is open 24 hours a day, spot Bitcoin ETFs are only available during US market hours. Following the recent overnight market meltdown, ETF investors were unable to sell and were forced to wait until the market reopened. This prompted concerns about liquidity and market access.
As the price of Bitcoin fell below $60,000, a relentless selling rush ensued, culminating in the liquidation of more than half a billion dollars in only 24 hours. Significant withdrawals from spot Bitcoin ETFs, along with the Federal Reserve’s forthcoming interest rate decision, have lowered investor expectations for Bitcoin.

Bloomberg ETF Analyst Disagrees with Schiff

James Seyffart, a senior ETF analyst at Bloomberg, responded to Schiff’s statements, claiming that the liquidity difficulties he described are not limited to spot Bitcoin ETFs but also apply to gold-based and international stock ETFs. Seyffart disputed Schiff’s claim that gold does not endure overnight crashes like Bitcoin, noting that market-moving events in regular markets can occur outside of trading hours.

Schiff reiterated his stance, claiming that gold’s stability is amazing in comparison to its digital counterpart’s volatility and that gold investors should be less concerned. Schiff’s remarks revived debate in the cryptocurrency community concerning the specific obstacles and hazards connected with spot ETF investing, particularly during volatile market periods.

The latest cryptocurrency market fall is a reflection of the continued volatility and uncertainty surrounding Bitcoin and altcoins. While some investors remain bullish about cryptocurrencies’ long-term potential, others are growing more cautious in response to macroeconomic changes and other market volatility.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.