Economist Who Predicted the 2008 Financial Crisis Mocks Bitcoin Investors: “I Told You So”

Peter Schiff, the famous gold investor, took advantage of the fall of Bitcoin last Tuesday (23) to mock cryptocurrency investors. In “I told you so” style, Schiff says he was ridiculed when he said ETFs would be a “buy the rumor, sell the news” event, but now the market has proven him right.

At the time of writing, Bitcoin is trading at $38,600, down 21% from January 11, when ETFs were approved in the US.

In addition to Bitcoin, Schiff also provided insight into a giant in the sector. The target this time was the real estate agent Coin basewhich despite serving as support for these ETFs, on the other hand may lose customers.

Peter Schiff says he warned of Bitcoin’s fall

Peter Schiff is known for predicting the great housing crisis of 2008 and is one of Bitcoin’s biggest critics. On his social networks, Schiff regularly attacks Bitcoin, while his investments in gold continue without major profits.

Even before the ETFs were approved, the ‘gold bug’ warned that the launch of these products could trigger a reverse event in the market, resulting in a decline. Few listened to him.

“The introduction of a spot Bitcoin ETF will prove to be a non-event”Schiff noted in December 2023 about a Michael Saylor video. “It will be historically insignificant. There will be minimal demand from investors and speculators who bought on the news are likely to sell out.”

The introduction of a spot Bitcoin ETF will prove to be a non-event. Historically it will be of little significance. There will be minimal investor demand and the speculators who bought on the news will likely sell this fact.

— Peter Schiff (@PeterSchiff) December 20, 2023

This Tuesday (23), after Bitcoin continued its decline and fell below $39,000, Schiff celebrated the success of his prediction.

“The Bitcoin experts who ridiculed me and everyone who claimed the new Bitcoin ETFs would be a ‘buy the rumor, sell the news’ event are now ignoring the magnitude of the drop and claiming it’s just a classic ‘buy the rumor’. , sell the news” event, what was to be expected”Schiff noted on Tuesday (23) after Bitcoin fell below $39,000.

The #Bitcoin ‘experts’ who ridiculed me, and everyone who claimed the new thing #BitcoinETFs would be a ‘buy the rumor, sell the news’ event, now dismiss the significance of the decline and claim that it is just a classic ‘buy the rumor, sell the news’ event that was to be expected.

— Peter Schiff (@PeterSchiff) January 23, 2024

Although he got it right this time, Schiff looks like a broken clock. In early 2023, Schiff advised people to sell their bitcoins, noting that BTC would fall to $3,800.

Even with the recent decline, Bitcoin has increased in value by 73% since Schiff’s speech above. Gold, the most important asset, rose by only 10.5% in the same period.

Peter Schiff talks about Coinbase, a Bitcoin broker listed on Nasdaq

Peter Schiff took advantage of the day of Bitcoin’s fall and took the opportunity to express his doubts about Coinbase. Coinbase, listed on Nasdaq, is the broker used by managers to buy and sell bitcoins for their ETFs.

“One of the biggest losers among the new Bitcoin ETFs is COIN [ação da Coinbase]”Schiff wrote. “Although Coinbase holds Bitcoin in these ETFs, speculators who previously traded Bitcoin through Coinbase are now trading in the ETFs.”

“Additionally, many who bought COIN as a proxy for Bitcoin are now buying ETFs.”

One of the biggest losers of the new #BitcoinETFs is $COIN. Even #Coinbase custodians #Bitcoin These ETFs are held by speculators who once traded Bitcoin, although Coinbase now trades the ETFs instead. Also many who bought $COIN as a Bitcoin proxy is now buying the ETFs.

— Peter Schiff (@PeterSchiff) January 23, 2024

In other words, Schiff believes Coinbase will make less money on ETFs than on trades made directly with the brokerage. Since the start of 2024, Coinbase shares have fallen 21.5%, similar to Bitcoin’s fall over the same period.