Peter Schiff Casts Doubt on Notion of Increased Institutional Interest in Bitcoin, Citing Recent Market Dip

The leading voice in Bitcoin skepticism, Peter Schiff, recently cast doubt on the notion of increased institutional interest in the pioneering cryptocurrency.

Bitcoin skeptic Peter Schiff casted doubt on the narrative of increasing institutional interest in the pioneering cryptocurrency recently, following Friday’s BTC market dip, which was punctuated by a 10% price downturn.

However, blockchain data from Lookonchain reveals a facilitation of combined Bitcoin transactions – totaling to an astounding 17, 788 units, or approximately $1.08 billion, since mid-June. This massive transfer is largely attributed to the German and US governments, as well as the now-defunct crypto exchange Mt. Gox.

Upon closer inspection, the German government has been consistently selling off portions of its Bitcoin holdings every day since the beginning of July. At one point, they offloaded a significant 3,000 units, which carries an approximate value of $175 million, on a Thursday. This consistent sell-off, coupled with repayments to creditors by Mt. Gox, resulted in immense selling pressure on Bitcoin. The effect: a dramatic price slide from Thursday’s $60,097 to a measly $53,971 on Friday.

In response to these developments, Schiff aired his sentiments in a post on Saturday. He theorized that the plummet in Bitcoin’s price illustrates the overestimation of institutional demand for the leading digital asset. Despite acknowledging that the market sell-off largely contributed to Bitcoin’s depreciation, Schiff adamantly underscored the lack of significant institutional demand. In his view, if this demand were as profound as projected, these institutions would be capitalizing on the available volumes of Bitcoin currently flooding the market.

Schiff’s assertions appear to challenge primary sentiments suggesting a surge in Bitcoin’s institutional demand since the roll-out of Spot Bitcoin ETFs in January. Intriguingly, Bitcoin boasted an upward trajectory in the first quarter of 2024, skyrocketing to an unprecedented peak of $73,750. This impressive ascent was concurrent with the explosive growth of the Spot Bitcoin ETF market, which recorded a staggering $10 billion trading volume in March.

On a separate note, high-profile crypto analyst Rekt Capital holds a more bullish view on Bitcoin’s future, suggesting a potential relief rally after its recent price setback. Rekt Capital points out that, despite the market dip, Bitcoin managed to conclude Friday’s trading clocking over $56,750, allowing it to stay within the lower range area of $60,600.

The expert hinted at a potential bullish rebound, suggesting that if Bitcoin can maintain this price level, it could possibly catalyze a price resurgence shooting as high as $71,000. Currently, Bitcoin continues to trade around $58,189, exhibiting a 2.45% rise on the day. However, the digital asset’s daily trading volume remains suppressed by a hefty 63.35%, valuing at just $20.61 billion.

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