© Reuters Peter Schiff issues crucial Bitcoin (BTC) warning that could make sense
U.Today – A sudden rise in price to around $48,000 was abruptly followed by a drop to around $45,000, after a post from a hacked SEC Twitter account falsely announced ETF approval.
The renowned Bitcoin and cryptocurrency skeptic has weighed in with a warning about the situation. Schiff suggests that with market anticipation that actual ETF approval is on the horizon, the recent volatility could be a precursor to more substantial market disappointment.
He posits that the hack-induced spike and subsequent correction may not be an isolated incident and that the market's tendency to defy speculative expectations could mean that actual approval, if it occurs, will not necessarily translate into the bull run that investors expect. investors.
Schiff's advice to investors is to consider selling today, rather than waiting for the market to potentially “disappoint” with the actual news. This stance, while typically bearish and in line with Schiff's general sentiment toward , may resonate with traders trying to avoid unnecessary risk.
Schiff's warning points to the possibility of an “overbought” scenario in which the hype leading up to the approval has already been priced in, and the actual event could trigger profit-taking rather than more buying.
The underlying message in Schiff's warning is one of caution. Traders and investors would do well to consider pre-existing market dynamics and the fact that the cryptocurrency market has often moved against majority expectations, especially in the context of high-stakes regulatory developments.
The coming days could prove a critical test to see if it can sustain its recovery following the approval of the long-awaited product or, as Schiff suggests, the market is setting itself up for a disappointment.
This article was originally published on U.Today.
