Bitcoin prices fell nearly 4.2% over the past day, going as low as $65,603 per token before slightly recovering to hover around $67,000. This price action was observed as the MSCI All Country World Index reached a new record high, driven by the AI rally.
The broad crypto market sell-off accelerated overnight even as global stock indexes hit fresh highs. Yesterday, even SpaceX reportedly sought to raise $75 billion during its initial public offering expected next week.
The crypto flash crash follows several developments, including Michael Saylor's Strategy selling 32 BTC for the first time since September 2022, Mark Cuban offloading most of his BTC holdings after the token underperformed during the Middle East crisis, and long-time bulls like Robert Kiyosaki warning against blindly investing in cryptocurrencies and precious metals. A week of bearish news was intensified by Mt. Gox's $739 million transfer to a new wallet, stalled Middle East negotiations, and record spot BTC ETF outflows.
Traders on the Kalshi financial exchange are already pricing in a scenario where Bitcoin prices fall to $50,000 per token in 2026.
Cashing Out BTC to Pile Into Blockbuster IPOs?
While multiple bearish drivers are mounting pressure on Bitcoin prices over the past month, the trading desk at QCP believes the broader issue is liquidity rotations.
'Crypto is facing competition for capital as equity markets continue to outperform, with both crypto-native investors and traditional asset managers being pulled toward stronger equity narratives,' the digital asset trading firm recently told CNBC.
QCP added that investors might be selling Bitcoin to free up liquidity for opportunities in private markets or upcoming IPOs of companies like SpaceX, OpenAI, and Anthropic. These IPOs are slated to be the most impactful market events this year.
BTC Must Hold Above $60K to Avoid a Bigger Crash
Bitcoin hovering around the $65,000-level is the immediate technical anchor, bringing the possibility of a break below $60,000 into focus. If that happens, BTC could see a much steeper fall.
'Bitcoin needs to hold around $65,000,' BTIG strategist Jonathan Krinsky told CNBC. That's 'really the last bastion of support before a test of year-to-date lows around $60,000,' he added.
'We see initial support around $63,000 to $64,000, where bids previously emerged in February and March,' QCP had mentioned. 'A break below that would bring $62,000 into focus, followed by the more important $60,000 psychological level and current cycle lows. Beyond that, $58,000 would be the next major support.'
However, Peter Schiff had a more alarming Bitcoin prediction. He predicted that BTC falling below $50,000 should drive down prices to $20,000 quickly, sparking a wave of pushback from the crypto community.
Peter Schiff predicted Bitcoin would break below $50,000 and then quickly plunge under $20,000, sparking a strong wave of pushback across the entire crypto community on X.
'There is way too much complacency in Bitcoin for the market to be anywhere near a bottom. When Bitcoin breaks $50K, it should be a quick fall below $20K, which should be a big enough drop to shake the conviction of long-term HODLers, causing many to finally throw in the towel,' he wrote on X.
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