Highlights:
- Arthur Hayes predicts a drop below $50,000, while van de Poppe stays optimistic.
- Market sentiment has dropped to “extreme fear” amid Bitcoin’s recent decline.
- BTC ETF outflows and global uncertainty are intensifying Bitcoin’s current price struggles.
On September 6, Arthur Hayes, Co-founder and former CEO of BitMEX, forecasted that Bitcoin’s (BTC) price may drop below $50,000 this weekend. He disclosed that he had taken a short position, betting on the market to drop.
Market sentiment has plunged back to “extreme fear” following Bitcoin’s brief dip below $56,000. The Crypto Fear & Greed Index fell to 22 on September 6, a seven-point decrease from the previous day’s “fear” level. This is the lowest score and price since the index reached 20 on August 8. It also marks the first time the index has re-entered the “extreme fear” zone since hitting 25 on August 12.
$BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.
— Arthur Hayes (@CryptoHayes) September 6, 2024
Bitcoin fell 1.55% on Friday, trading at $55,887, and has dropped nearly 5% over the past week. Bitfinex analysts recently cautioned that the expected Federal Reserve interest rate cut could push Bitcoin lower. They noted that while a 25 basis point cut could benefit Bitcoin in the long run by increasing liquidity and easing recession concerns, a larger reduction might have a negative effect on its price.
Bitcoin’s 24-hour price drop pulled down other major cryptocurrencies, with Ether losing 1.63%, Solana declining by 2.61%, and XRP sliding by 2.60%. The widespread price drops resulted in $97.49 million in liquidations over the past day, primarily from traders who had bet on Bitcoin’s price increase, according to CoinGlass data. More than $75 million in long positions were liquidated, with Bitcoin longs accounting for $30 million, nearly 40% of the day’s total. ETH long bets followed, with $13 million in liquidations.
Michael Van De Poppe More Bullish Than Hayes
Renowned crypto trader and analyst Michael van de Poppe holds a more optimistic view on BTC than Hayes. On September 5, he shared with his 724K+ followers on X that a potential crash is unlikely. Instead, he believes the “markets are gearing up for the biggest bull run ever.” He also suggested that this could be the “final” bull market before a significant economic crisis occurs.
The #Bitcoin Surge is Close
It’s typical. The four-year cycle is taking place just like any other cycle, but the significance of this cycle is comparable to the 1930’s of Gold or the https://t.co/GoodB359DI bust in 2000.
The impact of $BTC will be massive over the following… pic.twitter.com/ZARsWX4qf8
— Michaël van de Poppe (@CryptoMichNL) September 5, 2024
Bitcoin’s Price Drop Intensified by ETF Outflows
Bitcoin’s recent price drop has been intensified by ongoing spot Bitcoin exchange-traded funds (ETFs) outflows and increasing global market uncertainty. US ETFs experienced net outflows for seven consecutive trading days, losing more than $1 billion in total from August 27 to September 5, according to data from Farside Investors.
Notably, Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the capital outflows, not Grayscale’s Bitcoin ETF (GBTC). FBTC saw approximately $374 million in exits over those seven days, while GBTC experienced $227 million in outflows. Additionally, BlackRock’s iShares Bitcoin Trust (IBIT), the world’s largest Bitcoin ETF, recorded its second outflow since its January launch, with investors withdrawing $13.5 million on August 29. During this period, IBIT reported no inflows on other days.
This represented a slight decline from the fund’s earlier performance, as it had experienced steady inflows in the weeks before the stagnation. Other US Bitcoin ETFs, with the exception of WisdomTree’s Bitcoin Fund (BTCW), also reported losses, showing no significant capital inflows during the period.
