There is a new regular buyer of bitcoin in the market in the form of exchange traded bitcoin ETFs with at least $500 million per day. Many skeptics about bitcoin are predicting its collapse because of this. Famous bitcoin critic Peter Schiff warns that the current rise in bitcoin prices resembles "another classic dump and dump," pointing to significant interest in new spot bitcoin exchange-traded funds (ETFs) and anticipating a "carnage" in the near future.
On the other hand, gold enthusiast and successful investor Robert Kiyosaki predicts gold prices will fall to $1200 per troy ounce while bitcoin and silver prices will rise, in his opinion. He believes his prediction will prove to be correct.
Bloomberg notes that outflows from gold ETFs have reached $2.396 billion since the beginning of the year, suggesting that the majority of those funds may have gone into bitcoin ETFs. This suggests that investors have lost interest in gold due to its inability to deliver at least inflation compensation.
There is also a marked increase in interest in bitcoin, as a prominent venture capital firm owned by billionaire Peter Thiel purchased $200 million worth of bitcoin and ether in the second half of 2023 when prices were below $30,000. The enterprising company, which had previously shunned cryptocurrencies, now sees them as a potential profit.
Peter Thiel, who is highly regarded among venture capitalists, could be a catalyst for other large venture capital funds to look at bitcoin investments. While venture capital investments typically do not outperform the success of the cryptocurrency market, many fund managers are realizing that cryptocurrencies can generate greater returns even with less risk.
Thus, investing in bitcoin and ether appears more attractive to many venture capitalists than traditional startups, especially during periods when the crypto market is performing favorably, as is the case now.