Gold enthusiast Peter Schiff recently took to social media to issue a stark warning to Bitcoin enthusiasts, cautioning that institutional exchange-traded fund (ETF) buyers won't be their savior in times of market turmoil.

Schiff believes that relying on ETF buyers could further destabilize the cryptocurrency market, as he argues that all ETF buyers eventually become sellers. In contrast, he suggests that many spot buyers of Bitcoin intend to hold onto their holdings with the belief that Bitcoin will eventually replace fiat currencies.

Recently, the price of Bitcoin experienced a significant drop to an intraday low of $66,207, marking a loss of more than 5%. This downward movement comes after Bitcoin failed to break above the $72,000 level despite strong buying pressure driven by better-than-expected US jobs data.

Last week, the US-based spot Bitcoin ETF recorded its second-largest inflows to date, indicating growing institutional interest. However, Bitcoin's streak of 19 days of uninterrupted inflows came to an end as ETF products witnessed outflows of nearly $65 million on Monday. Even BlackRock's IBIT saw modest inflows of only $6.3 million, failing to reverse the trend.

Market observers are closely watching for Bitcoin's reaction to the upcoming consumer price index (CPI) report for May, expected to bring more volatility. The inflation reading will provide insights into the Federal Reserve's future policy decisions, with accelerating inflation potentially acting as a bearish factor for Bitcoin.

The Federal Reserve is also set to announce its interest rate decision, although it's unlikely to cause significant market fluctuations as rates are expected to remain unchanged.

Peter Schiff's warning highlights the fragility of the cryptocurrency market and the potential risks associated with ETF reliance. While institutional adoption may bring short-term benefits, Schiff suggests that it could ultimately contribute to market instability.

As Bitcoin faces market uncertainties and potential regulatory developments, investors should consider the diverse factors influencing its price movements. Peter Schiff's cautionary words serve as a reminder to market participants to approach cryptocurrency investment with caution and awareness of potential risks.