U.Today – As the price of bitcoin fell below $58,000, Arthur Hayes, a prominent figure in the cryptocurrency industry, made a bold prediction: he believes the price of bitcoin will fall below $50,000.
The timing of this call indicates a very bearish short-term outlook, as it aligns with one of Hayes’ first open public announcements of his Bitcoin brief position. Hayes recently posted saying that Bitcoin was looking tough and was targeting a price below $50,000, opening a brief position and asking for prayers.
This stance is consistent with the overall bearish market stance, as institutional investors are noticeably exiting the market and general pessimism about the Bitcoin price remains. Another indicator of the dire situation is the significant drawdowns from spot Bitcoin ETFs that have occurred over the past seven days, indicating a decline in institutional investor interest.
On September 5, there was a net outflow of $211 million, of which $23.2 million was in Grayscale’s GBTC ETF. Outflows from Bitwise’s BITB ETF added another $30 million, and outflows from Fidelity’s FBTC ETF were even more striking at $149 million. As investors remain reluctant to enter or maintain positions in the current market environment, this ongoing capital outflow has significantly depressed the price of Bitcoin.
The scale of the institutional pullout from spot Bitcoin ETFs is shown by the fact that the total net asset value of these funds has fallen to $50.727 billion. Hayes’ prediction that Bitcoin will fall below $50,000 does not seem improbable given the current bearish sentiment.
The chart clearly shows Bitcoin as being in a downtrend and breaking above critical support levels like the 200 EMA. A drop to sub-$50,000 levels could be possible in the coming days, due to ongoing outflows and looming uncertainty.
