Bitcoin ETFs Can Trigger Large Liquidations Soon, Predicts Peter Schiff

CryptoQuant CEO Ki Young Ju stated that Bitcoin ETFs are slowly gaining maturity and currently contribute nearly 25% of the spot trading volumes in BTC.

Bhushan Akolkar By Bhushan Akolkar Julia Sakovich Edited by Julia Sakovich Updated 2 mins read
Bitcoin ETFs Can Trigger Large Liquidations Soon, Predicts Peter Schiff
Photo: Gage Skidmore / Flickr

Bitcoin ETF inflows have slowed down significantly in recent weeks as BTC price continues to slide further slipping all the way to $54,000. Renowned Bitcoin critic Peter Schiff has issued a stark warning to Bitcoin ETF investors.

As the Bitcoin price has slipped to $54,000, Schiff said that nearly 70% of those who bought the spot Bitcoin ETFs are likely experiencing losses. Schiff further speculates that if the BTC price drops under $38,000, nearly 100% of the Bitcoin ETF investors would be facing losses. Schiff anticipates that such a scenario will trigger significant selling, as most crypto ETF speculators will abandon their positions for good.

On-chain data provider Santiment also reported that there was a significant drop in the trading volumes of the top seven BTC ETFs during the first week of July. Santiment noted that this is a clear sign of trader indecision which can be a precursor to market capitulation.

For bullish crypto investors, this period of low volume may present a strategic buying opportunity. Santiment predicts a potential rebound in trading volumes tomorrow as the market compensates for the US stock market’s closure on the 4th of July holiday.

Bitcoin ETFs Can Trigger Large Liquidations Soon, Predicts Peter Schiff

Photo: Sanitment

When Will Bitcoin ETFs Gain Maturity?

BTC ETFs are relatively new investment products that saw strong acceptance during the first quarter. However, following the Bitcoin halving and the BTC miner capitulation, BTC price came crashing down nearly 30% from its all-time high and the ETF inflows have dried up as well.

However, CryptoQuant CEO Ki Young Ju stated that Bitcoin ETFs are slowly gaining maturity and currently contribute nearly 25% of the spot trading volumes in BTC. If we look at the total BTC trading volume (spot + derivative), the BTC ETF contribution is 5%.

Considering that it’s a relatively new investment product, Bitcoin ETFs would continue to gain significance over a period of time.

This cycle is different. The source of money is different.

In the first week of July, the Bitcoin ETF trading volumes have dropped significantly showing a clear sign of trader indecision which can be a precursor to market capitulation.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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