Bitcoin experienced a sharp decline, falling over 17% in ten days and slipping below $104,000 after reaching an all-time high of $126,198 on October 7, according to Coingecko data. The drop was triggered by renewed banking concerns, with reports of financial strain at Zions Bank and Western Alliance Bank fueling fears of broader instability in the U.S. regional banking system.
Arthur Hayes, co-founder of BitMEX, urged investors to treat the dip as a buying opportunity. On X, he stated, "BTC is on sale," and argued that if banking stress deepens, the U.S. government could intervene with bailouts similar to those in 2023. Hayes believes this could lead to a rebound stronger than the one seen after the 2023 crisis, potentially driving more capital into digital assets.
In contrast, Andrew Tate predicted Bitcoin could crash to $26,000 before any real recovery begins, comparing it to September 2023 lows. He warned against "blind optimism" and stated, "Everything can always get worse. The price can always go lower," suggesting the market would only recover once excessive optimism is eliminated.
Supporting the bearish outlook, ETF data showed $536 million in daily outflows, with four out of five sessions in the red. Additionally, over 51,000 BTC moved from miners to exchanges last week, indicating possible liquidation pressure. Economist Peter Schiff added that Bitcoin has lost more than 30% of its value against gold since its peak, calling this phase "the beginning of a brutal decline."
The contrasting views from Hayes and Tate reflect broader market uncertainty, compounded by U.S.-China trade tensions and institutional caution, leaving investors divided on whether the current dip is a chance to buy or a warning to wait.
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