Key Insights:
- Peter Schiff says Bitcoin price could plunge toward $20K if the critical $50K support level breaks.
- Spot Bitcoin ETFs record $165.76 million in net outflows, extending the recent negative flow trend.
- Developers warn Bitcoin is not prepared for rising quantum computing risks to its cryptography.
Bitcoin news remains focused on downside risks after Peter Schiff warned that the Bitcoin price could fall if it breaks below $50,000. He said a major move under that level may trigger a deeper selloff. His comments come as spot Bitcoin ETFs recorded $165.76 million in net outflows, extending a recent negative streak.
Schiff shared his outlook in a post on X, stating that a drop below $50,000 would likely accelerate losses. He projected that the Bitcoin price could slide toward $20,000 under that scenario.
He noted that a fall to $50,000 would represent an 84% decline from Bitcoin’s all-time high of $126,000 reached last October. While Bitcoin has experienced large drawdowns before, he said current conditions differ from past cycles. However, he did not provide a technical analysis when asked to explain his projection.
Bitcoin News Highlights $50K Level as Key Support
In his recent speech, Schiff mentioned $50,000 as one of the support levels for the Bitcoin price. He argued that a loss of that level might result in long-lasting weakness. He added that volatility can still shape Bitcoin’s market behaviour.
Peter Schiff View on Bitcoin News / Source: X
Schiff said that each time Bitcoin hits a new high, advocates of the currency argue that such volatility is now a thing of the past. He added that after people have declined, volatility is often said to become the norm by market participants. He contended that the asset was inherently volatile.
Earlier this month, Schiff had predicted that Bitcoin decline will be long. This was in reference to unrealized losses at Michael Saylor’s Strategy as part of a broader caution. However, he did not identify any specific price models or time frames.
Schiff has also raised doubts about Bitcoin’s role as a reserve asset. In an earlier interview, he said central banks will be challenged to hold off on huge volumes at existing prices. He said that governments have given small allocations in products of Bitcoin.
In addition, he voiced some reservations about long-term institutional involvement. He said institutional interest may decline over time if losses pile up. Meanwhile, ETF data tell us that there is ongoing capital outflows.
Bitcoin ETF Outflows and Market Data Add Pressure
In addition to Bitcoin news, Spot Bitcoin ETFs recorded $165.76 million in net outflows, according to recent data. The withdrawals extend a negative flow trend in the current cycle. As a result, Bitcoin’s price faces additional pressure near key technical levels.
Bitcoin news also turned to long-term security risks during a panel at ETHDenver on February 19. Hunter Beast, a Bitcoin developer, said the network is not prepared for quantum computing threats. He spoke alongside Isabel Foxen Duke and Alex Pruden, CEO of Project 11.
Beast stated that quantum computing presents a multidimensional challenge. He said the issue becomes clearer when examined in depth. According to him, Bitcoin will eventually need to upgrade its cryptography.
Pruden cited Google’s Willow quantum computing chip, unveiled in December 2024. He said that the chip can’t break Bitcoin at the moment. However, he added that this showed one possible way forward.
Earlier this month, researchers in Sydney published a paper about the risks of quantum decryption. The research said that some encrypted information, such as Bitcoin wallets, could be decrypted by less powerful computers than previously thought. Pruden said that the level for breaking encryption seems to be declining rapidly as quantum advances.