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Bitcoin price continued its strong downward trend as ETF outflows accelerated, geopolitical risks rose, and the government shutdown continued.
- Bitcoin price continued its strong downward trend on Saturday.
- The crash happened after Donald Trump nominated Kevin Warsh to be the next Fed Chair.
- It also dropped due to geopolitical risks, and the government shutdown started.
Bitcoin ($BTC) dropped below the key support level at $81,000 and hit its lowest level since October last year. It has moved into a bear market by falling by 35% from its highest point in 2025.
$BTC dropped as third-party data shows that ETF outflows continued. It shed over $509 million in assets last Friday, after losing $817 million on Thursday. They have shed assets in the last four consecutive days, bringing the monthly outflow to over $1 billion. It was the third consecutive month of outflows.
Bitcoin price also slumped after President Donald Trump nominated Kevin Warsh to become the next Federal Reserve Chairman. Warsh is widely seen as a hawk who has criticized the Federal Reserve for cutting interest rates. Therefore, there is a likelihood that he will embrace a more hawkish view at the Fed.
Meanwhile, there is a possibility that Trump will attack Iran. According to the WSJ, Trump is considering a kinetic attack that will avoid a prolonged war in the country.
On the other hand, Iran has warned that it may hit Israel, US installations in the region, and shut the Strait of Hormuz, a move that will disrupt the energy market.
Bitcoin has constantly proven that it is not a safe-haven asset. Instead, investors have embraced other assets like gold and the Swiss franc as risks have continued rising. Bitcoin also slipped as the US government moved to a shutdown.
Bitcoin price technical analysis
The daily timeframe chart shows that the $BTC price has crashed and erased all the gains it made earlier this year. It has now slipped below the psychological point at $85,000 and the key point at $83,885, its lowest level in December last year.
Bitcoin price has crashed below the 50-day and 100-day moving averages and the Supertrend indicator. It dropped below the Ultimate Support of the Murrey Math Lines tool.
The Average Directional Index has continued rising, a sign that the momentum is continuing. Therefore, the most likely $BTC price forecast is bearish, with the next key target being at $80,000. A drop below that level will point to more downside to last year’s low of $74,000.
bitcoinmagazine.com
beincrypto.com
coindesk.com