Bitcoin Price Crashes Below $66K on AI Boom, Peter Schiff Reiterates $20K Target

Bitcoin’s price fell to a 24-hour low of $65,422 on July 2024, extending its decline by over 20% in a month as capital shifted toward artificial intelligence stocks. K33 Research noted Bitcoin’s worst weekly performance since mid-February, with three-week spot ETF inflows hitting their second-lowest level on record. The firm linked the drop to liquidity draining from crypto markets as investors prioritized AI-related assets, including SpaceX and Anthropic IPO plans. The latest drop follows a 2% decline in a single day, pushing Bitcoin down 11% in a week. Stronger-than-expected U.S. jobs data eliminated expectations of Federal Reserve rate cuts this year, adding pressure. The Crypto Fear & Greed Index plummeted to 11, signaling extreme fear, while funding rates surged to levels unseen since November 2023. Market liquidations exceeded $1.5 billion, with Bitcoin, Ethereum, and XRP leading losses. Analysts pointed to multiple headwinds, including Michael Saylor’s Strategy selling Bitcoin and massive outflows from spot Bitcoin ETFs. Escalating U.S.-Iran tensions further destabilized investor sentiment. K33 Research’s report, titled *‘Summertime Sadness,’* emphasized that AI stock rallies were directly siphoning liquidity from crypto markets, exacerbating the downturn. Peter Schiff, a vocal Bitcoin critic, warned the price could fall below $20,000 once it breaks $50,000, arguing current market complacency masks deeper risks. He praised Mark Cuban for selling his Bitcoin holdings, dismissing the ‘digital gold’ narrative. Schiff also targeted Strategy’s STRC stock, predicting a ‘death spiral’ as it dropped below $96.50, while Wall Street analysts lowered MicroStrategy’s (MSTR) price targets following its Bitcoin sales. The downturn comes as funding rates hit yearly highs and open interest spiked, signaling heightened speculative activity. K33 Research highlighted that even institutional players were reducing exposure, contributing to broader market weakness. The combination of AI-driven capital flight, macroeconomic uncertainty, and strategic Bitcoin sales has intensified the correction, with no immediate recovery in sight.