U.Today – Since falling below $58,000, prominent figure in the cryptocurrency space Arthur Hayes has made a bold prediction: he believes Bitcoin will now fall below $50,000.
The timing of this call indicates a very bearish short-term outlook, as it coincides with one of Hayes’ first open public announcements about his short position on Bitcoin. Hayes recently posted that Bitcoin looks heavy and that he is targeting the sub-$50,000 price level, opening a short position and asking for prayers.
This attitude is consistent with the general pessimism in the market, as institutional investors have been significantly exiting the market and the general pessimism regarding the Bitcoin price remains present. Another indication of the dire situation is the significant withdrawals from Bitcoin spot ETFs that have occurred over the past seven days, indicating a decline in interest from institutional investors.
On September 5, there was a net outflow of $211 million, of which $23.2 million was in Grayscale’s GBTC ETF. The outflow from Bitwise’s BITB ETF added another $30 million, and the outflow from Fidelity’s FBTC ETF was even more striking at $149 million. As investors remain reluctant to enter or hold positions in the current market environment, this continued capital outflow has significantly pushed down the price of Bitcoin.
The extent of institutional withdrawal from Bitcoin spot ETFs is demonstrated by the fact that the total net asset value of these funds has now fallen to $50.727 billion. Hayes’ prediction that Bitcoin would fall below $50,000 does not seem far-fetched, given the current bearish sentiment.
The chart clearly shows that Bitcoin is in a descending price channel and is breaking out of important support levels such as the 200-day EMA. A drop to levels below $50,000 is possible in the coming days due to ongoing capital outflows and looming uncertainty.
This article was originally published on U.Today
