Key Points:
- Bitcoin briefly dropped below $80,000 before recovering, with Peter Schiff warning that the cryptocurrency could fall toward $75,000.
- U.S. spot Bitcoin ETFs recorded approximately $773.5 million in combined net outflows on Thursday and Friday, adding pressure to an already cautious market.
- Bloomberg Intelligence strategist Mike McGlone warned that “don’t fight the Fed” could become a defining lesson of the fourth quarter for Bitcoin, gold and copper.
Bitcoin came under renewed selling pressure over the weekend, briefly falling below $80,000 as bearish commentary and substantial exchange-traded fund outflows weighed on market sentiment. The decline has intensified scrutiny of cryptocurrency demand at a time when investors are assessing Federal Reserve policy, volatility across traditional markets and the relationship between digital assets and broader financial conditions.
Bitcoin Tests $80,000 as ETF Outflows Weaken Sentiment
Bitcoin traded near $80,166 on Sunday, down approximately 0.3% over 24 hours, after briefly retreating into the $79,000 range, according to the Yahoo Finance report. The price action placed the cryptocurrency near levels last observed in mid-September and renewed questions about the durability of its recent trading range.
Capital flows added to the pressure. U.S. spot Bitcoin exchange-traded funds recorded approximately $773.5 million in net outflows across Thursday and Friday, according to data from Farside Investors cited in the report. Consecutive sessions of withdrawals can signal reduced demand for regulated Bitcoin exposure, although individual outflow periods do not establish a lasting trend on their own.
Market sentiment also remained cautious. The Crypto Fear & Greed Index stood at 40, placing sentiment in the “Fear” category. Retail discussion tracked by Stocktwits was classified as bearish, even as the volume of conversation increased from a previously low level. Together, these indicators suggest that uncertainty was elevated as Bitcoin struggled to maintain the $80,000 threshold.
Peter Schiff Identifies $75,000 as the Next Downside Level
Gold advocate and longtime Bitcoin critic Peter Schiff interpreted the break below $80,000 as evidence that the cryptocurrency was “finally breaking down.” He identified $75,000 as a potential next level if selling continued and warned that a failure to hold that price could create a difficult weekend for Bitcoin investors.
Schiff’s comments also highlighted a structural difference between direct cryptocurrency ownership and exchange-traded products. Bitcoin trades continuously, including on weekends, while U.S.-listed spot Bitcoin ETFs generally follow conventional stock-market hours. Investors holding ETF shares therefore cannot normally trade those shares during the weekend to respond immediately to movements in Bitcoin’s price.
That difference can complicate risk management during periods of sharp volatility. However, Schiff’s $75,000 target remains a forecast rather than an established outcome. Whether the market approaches that level depends on subsequent demand, liquidity and broader financial conditions.
Mike McGlone Sees Federal Reserve Policy as a Key Risk
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, offered a broader macroeconomic interpretation. He suggested that “don’t fight the Fed” could become the defining lesson of the fourth quarter for Bitcoin, gold and copper, arguing that volatile assets may remain vulnerable when monetary conditions work against them.
McGlone also compared the volatility of the iShares Bitcoin Trust (IBIT) with that of the iShares 20+ Year Treasury Bond ETF (TLT). According to his assessment, IBIT trades at approximately three times TLT’s volatility, while the ratio between the two appeared to be rolling over from a base established at the end of 2024.
He further suggested that the unwinding of leveraged long positions in U.S. Treasury bonds and short positions in Bitcoin could create conditions for a potential mean-reversion move. Nevertheless, this remains McGlone’s interpretation of market positioning, not confirmation that a reversal is imminent. His previous bearish calls, including a scenario involving Bitcoin falling toward $10,000, also underscore the uncertainty surrounding long-range price forecasts.
Looking ahead, investors will be watching whether Bitcoin can sustain a recovery above $80,000, whether ETF flows stabilize when U.S. markets reopen, and how Federal Reserve expectations influence demand for volatile assets. A sustained decline could reinforce concerns about weakening momentum, while renewed inflows and improved price stability would challenge the bearish outlook. The coming sessions should help clarify whether the weekend decline represents a temporary liquidity-driven move or a broader shift in market positioning.
Comparison, examination, and analysis between investment houses
Leave your details, and an expert from our team will get back to you as soon as possible
