Bitcoin Sinks Below $57,000 Amidst Market Turbulence As Gold Bug Eyes Imminent Trip To $20,000

The Bitcoin price continues its post-halving retrace, which has seen the flagship crypto tumble below $57,000 following what seemed to be a poor debut of spot ETFs in Hong Kong.

Well-known Bitcoin hater Peter Schiff predicts that Bitcoin will collapse back to the $20,000 level. The gold bug contends that it would still be a “high” price for BTC.

Tailwinds Combine To Keep Bearish Pressure On

Is the crypto bull market over? That’s the question on everyone’s mind after Bitcoin slipped below the $60,000 mark.

The fourth successive session of net outflows from U.S. spot Bitcoin exchange-traded funds has raised serious concerns among investors. Users have been yanking money out of the Grayscale GBTC ETF due to its exorbitant fees, while the Blackrock IBIT ETF has halted inflows for several consecutive days for the first time since its January launch. 

April proved to be extremely sluggish for U.S.-listed BTC ETFs amid weak macro and geopolitical conditions. Therefore, despite the unimpressive performance of the newly approved Hong Kong spot ETFs, the appetite for such products in the U.S. is ebbing. 

Investors are also bracing for a hawkish stance from the Federal Reserve ahead of the U.S. FOMC announcement scheduled for later today, with expectations set for zero changes to the interest rates. 

Signs that the Fed will keep interest rates higher for a longer period, along with geopolitical unrest in the Middle East, are scaring investors away from risk assets such as cryptocurrencies.

Bitcoin Price Headed To $20K?

The Bitcoin price has endured strong selling bearish pressure today as the broader crypto market is headed south.

Currently, the price of Bitcoin sits at $57,025 per data from CoinGecko, having dropped to as low as $56,757 not long ago. Bitcoin’s daily dip stands at 7.8% as of this writing. Ethereum, meanwhile, is down to $2,858 as of press time, down 6.8% over the past 24 hours. Other altcoins are also facing a brutal downtrend, with Solana’s SOL and Dogecoin (DOGE) down 7.6% and 10.7%, respectively.

Michaël van de Poppe, founder and CEO of trading firm MNTrading, predicted that Bitcoin’s sell-off will continue, with BTC dropping to $55,000, before embarking on the path of recovery.

Monthly close approaching for #Bitcoin and FOMC day tomorrow.

I think we'll see that sweep beneath $60K and potentially cascade towards $55-58K from which we're finding the low and rotate back upwards.

From there: Ethereum ETF hype in May to pick up momentum. pic.twitter.com/Iki4De9mSF

— Michaël van de Poppe (@CryptoMichNL) April 30, 2024

However, gold bug Peter Schiff sees Bitcoin dropping all the way to $20K. When this happens, as per Schiff, software company MicroStrategy, which is currently the biggest corporate holder of Bitcoin, will have an unrealized loss of $3.25 billion. 

Schiff also accused MicroStrategy, which owns a whopping 214,400 BTC, of manipulating the price of the premier cryptocurrency.