Over the weekend, Bitcoin (BTC) faced a crucial test as it dropped to $60K amid escalating tensions in the Middle East. This level has served as a psychological support in the past, bouncing back thrice since March. However, renowned investor Peter Schiff warned that a break below $60K could lead to significant losses for Bitcoin and companies like MicroStrategy.
Despite a partial recovery from the weekend dip, Schiff emphasized the importance of the $60K support level for Bitcoin. He cautioned that if BTC were to drop below this critical threshold, it could trigger a major downtrend with a potential target of $20K. This hypothetical scenario would result in MicroStrategy facing billions in unrealized losses due to their significant holdings in Bitcoin acquired at a higher average price.
As BTC reclaimed $65K following reports of potential de-escalation of tensions in the Middle East, market analysts expressed differing views on the future trajectory of the cryptocurrency. While some, like Quinn Thompson, advised caution due to unresolved geopolitical risks, others like Mike Novogratz remained optimistic about Bitcoin’s rally post any market crash. Furthermore, the impending launch of BTC ETFs and the increase in gold accumulation by Chinese investors may have significant implications for the digital asset’s price movement in the near future.