The economist highlighted the current trends in trading and the rise of Bitcoin ETFs. Peter Schiff coined the term “smart money” to refer to individuals selling their Bitcoin on exchanges. A contentious analysis of Bitcoin (BTC) and the Exchange-traded Fund (ETF) was recently presented by Schiff, a gold advocate in the financial industry.
Schiff emphasized the ongoing trading patterns and the surge in Bitcoin ETFs, categorizing those selling BTC on the spot market as “smart money.” In contrast, he viewed those buying Bitcoin through ETFs as “dumb money” investors. He pointed out that there has been a notable increase in what he labeled as “smart money” transactions in the market lately.
Significant Selling Activity
Recent reports indicated that two large addresses, believed to be controlled by whales, sold 9,301 BTC on Binance on July 5. Moreover, other Bitcoin whales transferred a substantial amount of BTC a day earlier, as per Whale Alert, a well-known on-chain transaction monitoring platform, leading to speculative activities in the market.
These whales executed transactions totaling around $3 billion in Bitcoin, causing a notable drop in the Bitcoin price. Furthermore, previously dormant Bitcoin wallets became active, with some of them moving their Bitcoin holdings to cryptocurrency exchanges upon reactivation.
Among the examples of “dumb money” are investors acquiring Bitcoin exchange-traded funds (ETFs) offered by companies like BlackRock and Fidelity. From Schiff’s perspective, Bitcoin ETF holders are at a high risk of suffering the most from a potential Bitcoin price collapse, a situation exploited by BTC whales. Consequently, Schiff commended the “smart” Bitcoin whales in a lighthearted manner.
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