In this week’s spotlight are news and trends in the leading cryptocurrency.
To begin the weekly Bitcoin roundup, Bloomberg analyst Eric Balchunas responded to Peter Schiff’s criticism of Bitcoin amid fund outflows from the Grayscale Bitcoin Trust (GBTC).
Peter Schiff attacked the recently launched Bitcoin ETF spot products, noting that they are not “creating additional demand.” He also hinted that newly listed ETFs are seeing inflows based on changing demands.
In his explanation, Schiff noted that “investors who could have bought actual Bitcoin, Bitcoin-related stocks like MSTR or GBTC, are simply buying the new ETFs.”
As if that were not enough, he concluded his publication by pointing out that this fund redistribution strategy will not stop the imminent fall in the price of Bitcoin.
In response to Schiff’s claims, Eric Balchunas asked for patience with newly released products before making assumptions. Balchunas agreed with Schiff in terms of changing demand and the redistribution of funds. He explained that ETFs often “steal” assets under management (AUM) from more expensive and underperforming alternatives.
Arthur Hayes: Bitcoin (BTC) Can Drop to $30,000
Former Bitmex CEO Arthur Hayes believes that a series of wars and the need to finance them are some of the reasons to expect a sharp cryptocurrency price correction before the next bull run.
In fact, he warned that Bitcoin could sink to between $30,000 and $35,000 amid a possible market slowdown caused by problems in traditional finance.
Deutsche Bank: Retailers Expect Bitcoin Drop Below 20K
According to a report from German banking giant Deutsche Bank Research, more than a third of investors surveyed believe Bitcoin will fall below $20,000 by January 2025. Another group is even more pessimistic, expecting the flagship cryptocurrency to disappear completely in the coming years.
Two thousand people from the United States, the United Kingdom and Europe participated in this survey, which was conducted from January 15 to 19. However, despite the pessimistic view, 15% of participants see a possible rebound, expecting the price of Bitcoin to rise to between $40,000 and $75,000 by the end of the year.
The bank’s study also found a lack of understanding about cryptocurrencies, with two-thirds of consumers having little to no understanding of digital assets.
Fidelity: Bitcoin Price Far from the Bottom
Jurrien Timmer, head of Fidelity, believes that the current state of Bitcoin is not the worst that could happen in the short term. Despite the volatility, expect the BTC price to continue falling. However, he maintains some optimism due to the approval of Bitcoin ETFs by the SEC.
Timmer further suggests that the drop in the price and actions related to Bitcoin are part of the expected volatility. Although he recognizes that the outlook is challenging for buyers who joined the ETF hype, he believes that the market will eventually balance.
VSFG Ready to Launch a Bitcoin ETF
According to Bloomberg, Venture Smart Financial (VSFG), a Hong Kong-based financial services firm, plans to launch an ETF that invests directly in Bitcoin in the first quarter of 2024.
Brian Chan, head of investment and products at VSFG group, said: “It is a market that has enormous potential. “The firm aims to reach $500 billion in assets under management by the end of this year.”
At least 10 fund managers have been working to launch a Bitcoin Spot ETF in Hong Kong, amid a Bitcoin ETF craze in the United States.
By Leonardo Perez
