Bitcoin’s Post-Halving Consolidation Draws Criticism from Peter Schiff

In recent commentary, Bitcoin skeptic Peter Schiff has questioned the demand driving spot BTC Exchange-Traded Funds (ETFs) despite Bitcoin’s significant year-to-date gains of over 55%. Schiff pointed out that Bitcoin has been trading sideways for the last three months, resulting in minimal gains for spot BTC ETF investors. However, contextually, Bitcoin has surged nearly 70% since the U.S. Securities and Exchange Commission (SEC) approved these ETFs.
Spot ETFs track the price of Bitcoin, and although Schiff’s observations about Bitcoin’s consolidation post-halving are accurate, this pattern is not unprecedented. Historically, Bitcoin has experienced consolidation phases before entering parabolic growth cycles after halvings.
Despite Schiff’s scrutiny, institutional demand for Bitcoin remains robust. BlackRock and Fidelity’s spot BTC ETFs have performed exceptionally, amassing over $10 billion in assets under management within weeks of their launch. Bloomberg’s Eric Balchunas highlighted that capital from futures ETFs is flowing into spot BTC funds, underscoring the growing interest.
On-chain data reveals a four-year low in Bitcoin balances on centralized exchanges, indicating that investors are holding rather than selling. While Schiff speculated that ETF investors might liquidate due to prolonged consolidation, rising institutional investments suggest a long-term bullish outlook.
Notably, Bitcoin’s performance has outpaced traditional markets, with a 145% jump over the past year compared to the S&P 500’s 85% return over five years. Most BTC buyers are currently in profit, and analysts predict that the global ETF market, which is expected to nearly triple by 2035, will further bolster Bitcoin’s ascent as crypto adoption accelerates.