Bitcoin experienced a significant decline over the weekend, breaking below the $80,000 mark and hitting its lowest point in over a month. According to CoinGecko, Bitcoin briefly fell to $79,226 on Saturday before rebounding slightly above $80,000. Despite this recovery, market volatility remained high, sparking concerns among investors and analysts alike.
Peter Schiff Warns of Potential Further Declines
Economist Peter Schiff, a long-standing critic of Bitcoin, voiced concerns that this recent downturn could signal the start of a more significant correction. Well-known for his pro-gold stance, Schiff suggests that Bitcoin could gravitate toward $75,000, and failure to hold this level might exacerbate losses.
Peter Schiff remarked, “Bitcoin has finally broken downward, and after falling below $80,000, the next stop is likely $75,000.”
Schiff also pointed out a crucial limitation regarding Bitcoin Exchange-Traded Funds (ETFs) traded in the U.S.—investors cannot trade these securities over the weekend because traditional exchanges are closed, potentially adding to the selling pressure when markets resume on Monday.
Leveraged Position Liquidations Surge
The sharp drop in Bitcoin’s price triggered widespread liquidations in the cryptocurrency market’s leveraged positions. Data from CoinGlass indicates that more than $815 million worth of leveraged crypto positions were closed in the last 24 hours, with the majority affecting long positions held by investors betting on a price increase.
During a particularly volatile four-hour period, approximately $404 million worth of long positions were wiped out. This sequence of events underscored the market’s rapid shifts, having briefly approached $85,000 merely days before.
Institutional Demand Slows Amid ETF Outflows
This latest downturn has also highlighted a notable weakening in institutional demand. U.S.-listed spot Bitcoin ETFs recorded a net outflow of $635.5 million on Thursday, with total outflows reaching approximately $773 million over just two trading days.
Spot Bitcoin ETFs, which aim to directly track Bitcoin’s price and trade on traditional exchanges, provide institutional and conventional investors a means of accessing cryptocurrency assets without the complexities of direct storage.
Schiff suggests that the inability of ETF investors to sell over the weekend could add further pressure, which may extend the current market weakness into the new week.
Although Bitcoin has managed to climb back above $80,000 following the initial shock, there remains no clear indication that the selling pressure has fully abated. This retreat has prompted both the unwinding of short-term leveraged positions and an acceleration of fund outflows from ETFs, underscoring the ongoing fragility in crypto markets.
