Amid the massive selloff in the Asia trading hours on Monday, August 5, the Bitcoin price has come crashing down over 12% falling all the way to $54,000. The worries surrounding the US recession have skyrocketed once again with traders unwinding their positions in most of the risk assets. Popular economist Peter Schiff stated that Bitcoin ETFs could face a hard time in Monday’s trading session.
Bitcoin ETFs Can See Major Gap Down
As said, the Bitcoin price has now crashed to $54,000 falling under the July lows. As this scenario pans out, popular economist Peter Schiff believes that there could be a 15% gap down for spot Bitcoin ETFs on Monday, from the January levels. If so, it could trigger massive liquidations going ahead.
#Bitcoin just sank below $58K. If it takes out it’s July low by tomorrow’s U.S. #StockMarket open, #BitcoinETFs will gap down by more than 15%, 30% below their Jan. highs. A loss of that magnitude may finally trigger mass ETF liquidations. If so, brace for a #Crypto black Monday.
— Peter Schiff (@PeterSchiff) August 4, 2024
Last Friday, August 2, the outflows from spot Bitcoin ETFs shot up significantly to more than $230 million with a sharp sell-off in all three US indices. The crypto market liquidations have shot up to $800 million as of the Asian trading hours on Monday. Altcoins have faced a great market correction with the Ethereum price dropping all the way to $2,200 with weekly losses extending to more than 30%.
Also Read: Ethereum ETF Outflows Hit $170M In A Week, What’s Next For ETH?
BTC Drop to $40,000 Coming?
With the Bitcoin price losing the crucial support of the 200-day moving average, analysts are predicting a major correction from here as well. CryptoQuant analyst Julio Moreno said that if BTC fails to regain the $57K support, there’s a chance that it could be going to $40,000.
Bitcoin is again testing key support levels.
The price is down to ~$57K, which is 12% lower than the On-chain trader realized price. This level has represented a support thorough the current bull market (dotted light blue line).
But, If this support fails, the price can go as… pic.twitter.com/G76hOAh34X
— Julio Moreno (@jjcmoreno) August 4, 2024
Japan’s Nikkei index has tanked by more than 20% since its July highs creating a sell-off across the global market. The US futures market is also trading deep down on Sunday hinting at a potential sell-off moving ahead. Chances of US recession and hard landing have shot up significantly as well!
Also Read: Peter Schiff Slams Bitcoin Debt Repayment Plan By Donald Trump
Bhushan Akolkar
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
