Peter Schiff has a warning to Bitcoin, Pepe, Filecoin, Mina, Conflux crypto bulls

Bitcoin (BTC/USD) price has surged hard in the past few days. The rally gained steam on Tuesday as the coin surged to over $35,000, the highest level since May last year. In all, BTC price has soared by more than 125% from the lowest level this year. This rally has brought its total market cap to more than $672 billion.

Bitcoin vs Mina vs Pepe vs Filecoin

Bitcoin spot ETF hopes

Bitcoin price has soared because of the rising hopes that the Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF later this year. Analysts believe that the agency will approve ETFs by the likes of BlackRock, Invesco, Franklin Templeton, and Ark Invest at the same time. 

The theory is that this approval will lead to more Bitcoin inflows from institutional investors. Most importantly, the ongoing Bitcoin resilience in a high-interest rate environment will make it more attractive.

Bitcoin has proven to be a survivor in the past decade. It thrived after the collapse of Mt. Gox in 2014. At the same time, it has survived last year’s collapse of Terra, FTX, Celsius, Voyager Digital, and Three Arrows Capital.

Most importantly, Bitcoin thrived during the Covid-19 pandemic, one of the biggest black swan events in our generation. And most recently, it has done well in a period when the Federal Reserve has hiked interest rates to the highest level in more than two decades.

Notably, Bitcoin has also done better than gold, which is often seen as a safe haven in times of trouble. It has jumped by over 70% in the past 12 months while gold is up by less than 30% in this period.

Therefore, we can’t rule out a situation where many institutional investors allocate a small portion of their funds to Bitcoin. Such a tiny amount will lead to substantial inflows and demand in the long term.

Peter Schiff warning about Bitcoin

Meanwhile, Peter Schiff, a well-known investor and gold advocate, has urged investors that Bitcoin’s top is nearing. In a Tweet, he argued that a Bitcoin top was nearing and will be confirmed when the SEC approves the ETF.

#Bitcoin is now trading at $35K as speculators bet on SEC approval of $GBTC converting into an ETF. Such a conversation will likely mark the top of the rally, if Bitcoin doesn't sell off prior to approval. The selloff will be less severe if the ETF conversion is rejected again.

— Peter Schiff (@PeterSchiff) October 24, 2023

His argument is partially right. I believe that Bitcoin and other altcoins like Mina, Zilliqa, Stacks, Conflux, and Filecoin are rising because of their correlation with Bitcoin. 

I also expect that these coins will pull back when the SEC approves a Bitcoin ETF. This is known as buying the rumor, selling the news. Most recently, we saw it happen with XRP, which surged after Ripple’s victory against the SEC. It then plunged by more than 50% from its highest level.

However, in the long term, Peter Schiff is wrong. As I described above, Bitcoin has already went through a major stress test in the past decade. It has survived some of its biggest issues, including the FTX collapseand Terra Luna implosion. Therefore, as it becomes more mainstream, we can’t rule out a situation where it moves and retests its all-time high.

My 11-minute summary of the essence of money, the problem of inflation, the paradox of investing, and the brilliance of #Bitcoin. pic.twitter.com/R6t15sAHFp

— Michael Saylor (@saylor) October 23, 2023