Bitcoin Slips Below $80K as Schiff Flags $75K Level

Bitcoin Drops Below $80,000 as Peter Schiff Warns of Further Decline

The crypto market experienced a sharp downturn over the weekend as Bitcoin (BTCBTC-0.18%) dropped below the psychologically significant $80,000 threshold. Data from CoinGecko shows the leading cryptocurrency slipped to around $79,226 on Saturday, October 24, marking its lowest price point in over a month.

Prominent gold advocate and long-time Bitcoin critic Peter Schiff shared his thoughts on the price drop via social media. Schiff suggested that if Bitcoin fails to hold current levels under continued selling pressure, it could potentially test the $75,000 mark. However, market trajectories always depend on underlying conditions: a resurgence in buying volume could help prices rebound, whereas sustained liquidations could lead to further downside.

Why Weekend Price Swings Impact ETF Investors Differently

One key focus during weekend market shifts is the difference between direct cryptocurrency exchanges and traditional equity markets. While crypto exchanges trade continuously 24 hours a day, traditional stock markets in the United States remain closed on Saturdays and Sundays.

Bitcoin is finally breaking down. It's hard to believe it's held up this long. Now that it's below $80K, the next stop is likely $75K. If that level fails to hold today, it's going to be a very long weekend for Bitcoiners, especially for ETF investors who can't sell until Monday.

Because U.S.-listed spot Bitcoin ETF shares are traded on conventional stock exchanges, investors holding these funds cannot buy or sell shares until normal trading hours resume on Monday morning. This creates a scenario where ETF holders must wait through weekend price fluctuations before adjusting their positions.

Liquidations Surge Past $815 Million Across Crypto Markets

The sudden price drop triggered widespread liquidations among derivative traders. According to data from CoinGlass, over $815 million worth of leveraged trading positions were liquidated across the entire crypto market within a 24-hour window.

Traders holding bullish 'long' positions faced the vast majority of these liquidations. In one particularly intense four-hour span, approximately $404 million in long positions were closed out. While Bitcoin later recovered back above the $80,000 level, market sentiment remains cautious as traders navigate ongoing volatility.

This sudden shift came only days after Bitcoin traded near $85,000 on Wednesday, October 21. As always, past performance of digital assets is not an indication of future results, and sharp short-term movements highlight the inherent volatility of crypto markets.

Institutional Demand Cools as Spot Bitcoin ETFs See Outflows

Adding to the market pressure, institutional investment through spot Bitcoin ETFs showed signs of cooling off late in the week. U.S.-listed spot Bitcoin ETFs recorded approximately $635.5 million in net outflows on Thursday alone.

When combined with the previous session, total net withdrawals reached roughly $773 million across two consecutive trading days. Schiff noted that he believes this pullback could mark the start of a broader correction, though market participants continue to monitor ETF capital flows closely.

Summary of Key Facts

• Price Action: Bitcoin touched a monthly low near $79,226 before recovering slightly above $80,000.
• Liquidations: Over $815 million in leveraged positions were liquidated in 24 hours, including $404 million in long positions in a 4-hour window.
• ETF Outflows: U.S. spot Bitcoin ETFs registered approximately $773 million in combined net outflows over two sessions.
• Market Context: Peter Schiff pointed to $75,000 as a potential key support level if selling persists, though market outcomes remain subject to broad trading conditions and volatility.