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 who cannot sell until Monday.
The weekend drop 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, also issued a cautionary note. He suggested that 'Don't fight the Fed' might be the defining lesson of the fourth quarter for assets like Bitcoin, gold, and copper. McGlone pointed out 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 previously predicted Bitcoin's slide toward $10,000, describing the cryptocurrency as being in a 'severe, serious bear market' in July. He hinted at a potential 'move of a lifetime' driven by mean reversion, following a recent shift in leveraged positions in U.S. Treasury bonds and Bitcoin.