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Bitcoin Critic Calls ‘Institutional Demand’ a Myth After Recent Price Crash
Prominent Bitcoin critic Peter Schiff is pushing back against claims of growing institutional interest in the inaugural cryptocurrency. Schiff’s provocative statement comes after the recent Bitcoin market sell-off that saw the price drop 10% on Friday.
Peter Schiff Says Institutional Demand for Bitcoin Is Weak
According to blockchain analytics platform Look on the chainThe German and U.S. governments and the defunct cryptocurrency exchange Mt. Gox have moved a total of 17,788 bitcoins, worth $1.08 billion, to the exchanges since June 19.
Notably, the German government has been selling off portions of its BTC holdings every day since early July, moving a substantial 3,000 BTC, worth around $175 million, on Thursday. The steady sell-off by German and US authorities, coupled with Mt. Gox’s repayments to creditors who were supposed to be sold, soon led to massive selling pressure on BTC, forcing the token’s price down from $60,097 on Thursday to a low of $53,971 on Friday.
Commenting on this event, Schiff stated in a post X Bitcoin’s price crash on Saturday proved that institutional demand for the market leader was overvalued. While the Bitcoin critic acknowledged that the market sell-off contributed to the asset’s decline, he also pointed out the lack of high institutional demand, which if it existed, should jump at the chance to buy the massive amount of Bitcoin that was sold.
Schiff’s comments are likely aimed at popular sentiments that institutional demand for Bitcoin is increasing following the Introducing Spot Bitcoin ETFs in January. Notably, the market leader embarked on an uptrend in the first quarter of 2024, reaching a new all-time high of $73,750, a development that coincided with the rapid growth of the Spot Bitcoin ETF market that reached a trading volume of 10 billion dollars in March.
Bitcoin Ready for Market Recovery, Says Analyst
In other news, prominent cryptocurrency analyst Rekt Capital has speculated that Bitcoin may be gearing up for a market recovery following the recent price drop. In a post X On Saturday, Rekt Capital noted that Bitcoin closed its daily trading above $56,750, allowing the token to continue to remain in the low $60,600 area.
According to analystIf BTC continues to cluster around the price region, it could soon launch a price bounce that will reach $71,000. At the time of writing, the leading cryptocurrency continues to trade at $58,189 with a 2.45% increase over the past day. However, BTC daily trading volume remains down 63.35% and is valued at $20.61 billion.
Featured image from Market Insider, chart from Tradingview