Bitcoin’s price dipped below $80,000 on Sunday, sparking warnings from long-time gold advocate Peter Schiff. He claimed the cryptocurrency was “finally breaking down” and predicted a slide toward $75,000. Schiff noted that if this level fails to hold, it could lead to a “very long weekend” for Bitcoin investors, particularly those in spot Bitcoin ETFs, which cannot be sold until Monday.
The weekend dip followed two days of outflows from U.S. spot Bitcoin ETFs, totaling $773.5 million on Thursday and Friday. Bitcoin’s price hovered around $80,166, down 0.3% over 24 hours, after briefly falling to the $79,000 range. Retail sentiment remained bearish, while the Crypto Fear & Greed Index sat at 40, indicating “Fear” territory.
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, echoed caution. He suggested that “Don’t fight the Fed” could be the defining lesson of the fourth quarter for assets like Bitcoin, gold, and copper. McGlone highlighted that the iShares Bitcoin Trust (IBIT) trades with about three times the volatility of the iShares 20+ Year Treasury Bond ETF (TLT), and the ratio between the two appears to be rolling over.
McGlone also noted a recent shift in trading strategies, with leveraged longs in U.S. Treasury bonds and shorts in Bitcoin potentially setting the stage for a significant market move. He has previously predicted Bitcoin’s decline toward $10,000, describing the cryptocurrency as being in a severe bear market.