Bitcoin price continued its strong downward trend as ETF outflows accelerated, geopolitical risks rose, and the government shutdown continued.
Summary
- 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.
