Bitcoin
After Middle East crisis, will Hong Kong’s ETF approval save BTC? Peter Schiff says…
Posted:
Journalist
- BTC retested $60K amidst an escalation in Middle East tensions over the weekend.
- Peter Schiff claims a drop below $60K will be risky for Bitcoin and its holders, including MicroStrategy.
Bitcoin [BTC] temporarily dropped to $60K on what market watchers link to escalated Middle East tensions over the weekend. BTC has bounced from this level thrice since March, making it a critical psychological support level.
Despite reversing some weekend losses, Peter Schiff cautioned that a break below $60K could expose BTC and MicroStrategy to massive losses.
“$60K is critical support for Bitcoin. A decisive break below that level will create a formidable triple top. The immediate downside projection is a move to $20K.”
Estimating the damage a sharp drop to $20K per BTC would have on MicroStrategy, the commentator expounded,
“At that price, $MSTR will have a $2.7 billion unrealized loss on 214K Bitcoin acquired at an average price of $34K.”
Bitcoin: Can Hong Kong ETFs counter geopolitical risks?
At the time of writing, BTC reclaimed $65K after tentative reports that the US seeks to de-escalate Middle East tensions.
But, other market watchers cautioned crypto bulls that the matter is far from resolved. Quinn Thompson, founder of crypto-focused Lekker Capital, noted;
“I would caution people longing crypto solely on the basis of a large leverage flush or the Middle East conflict being over.”
However, Galaxy Digital’s founder, Mike Novogratz, was confident that the BTC would rally after the crash. He emphasized that;
“Wars cost $$$…. Praying we don’t get a bigger one, but after the risk flush, BTC will resume its trend higher.”
In a separate development, an analyst at asset manager VanEck noted that Chinese investors have been accumulating Gold in recent weeks, pushing it to new price levels.
With Hong Kong having approved the Bitcoin ETFs, the analyst believes BTC could go parabolic, once again. He said,
“Our gold team at VanEck, S-tier, believes that gold’s parabolic rise is due in large part to Chinese buying. Chinese investors want hard assets as their real estate market and stock market have proven flimsy.
If Hong Kong approves Bitcoin etfs, watch out.”
This put the BTC price in a dilemma. It remains to be seen which factor—Hong Kong ETFs’ approval or Middle East tensions—will impact BTC prices the most in the short term.
