Bitcoin Spot ETF Funds Outflow: Peter Schiff's Concerned Crash Scenario

token_therapist · 2026-01-26T04:10:50+00:00

Peter Schiff, a gold advocate and economist, warns of significant downward pressure on Bitcoin due to structural weaknesses in spot ETFs. He highlights a shift in supply and demand dynamics, predicting a decline in Bitcoin prices amid increasing selling pressure.

token_therapist

2026-01-26 04:10:50

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Gold advocate and economist Peter Schiff recently warned that the structural limitations of the Bitcoin spot ETF could lead to significant downward pressure in the future. Known for predicting a bullish trend in gold and silver, Peter Schiff sharply pointed out the weaknesses in the cryptocurrency market this time.

Peter Schiff’s Perspective on Gold Bullishness

Peter Schiff explained, “When the Bitcoin spot ETF was first launched, demand far exceeded supply, and there were almost no sellers.” He notes that investor interest was high at that time, but the situation has now changed. Having called for a bullish opportunity in gold, Schiff has now gone as far as to describe Bitcoin as “nothing but dead money.”

Structural Weaknesses of the Bitcoin Spot ETF

What does the change in capital flow into Bitcoin spot ETFs signify? As the initial buying frenzy subsides, many investors currently hold these ETFs. This means that the potential supply for sale has increased significantly. From the supply side, concerns are mounting that the attractiveness of the ETF could diminish.

Supply-Demand Imbalance and Downward Pressure

As demand from new buyers decreases, Bitcoin is expected to face real downward pressure. Currently, Bitcoin is trading around $87,300, with a 24-hour decline of 1.96%. If the oversupply situation pointed out by Peter Schiff persists, this downward trend could intensify further. Supply-demand imbalance is not just a technical phenomenon but also a factor that influences investor psychology and market structure.

Ultimately, Peter Schiff’s concerns emphasize the fundamental market principle that oversupply and lack of demand lead to price declines. His core message is that structural changes in financial markets have an undeniable impact.

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