- BTC tested $60,000 again this weekend amid an escalation of tensions in the Middle East.
- Peter Schiff claims that a drop below $60,000 will be risky for Bitcoin and its holders, including MicroStrategy.
Bitcoin [BTC] temporarily dropped to $60,000 based on what market watchers linked to escalated tensions in the Middle East over the weekend. BTC has climbed from this level three times since March, making it a crucial psychological support level.
Despite reversing some weekend losses, Peter Schiff warned that a break below $60,000 could expose BTC and MicroStrategy to massive losses.
“$60K is a crucial support for Bitcoin. A decisive break below that level will create a formidable triple top. The immediate downward projection is a move to $20,000.”
The commenter estimated the damage a sharp drop to $20,000 per BTC would have on MicroStrategy:
“At that price, $MSTR will have an unrealized loss of $2.7 billion on 214,000 Bitcoin acquired at an average price of $34,000.”
Bitcoin: Can Hong Kong ETFs Counter Geopolitical Risks?
At the time of writing, BTC has recovered $65,000 following preliminary reports that the US is seeking to de-escalate tensions in the Middle East.
But other market watchers warned crypto bulls that the matter is far from solved. Quinn Thompson, founder of crypto-focused Lekker Capital, noted;
“I would caution people who are only pursuing crypto based on a large debt burden or the fact that the conflict in the Middle East is over.”
However, Galaxy Digital founder Mike Novogratz was confident that BTC would recover after the crash. He emphasized That;
“Wars cost $$$…. I pray we don’t get a bigger one, but after the risk flush, BTC will resume its uptrend.”
In a separate development, an analyst at asset manager VanEck noted that Chinese investors have been piling into gold in recent weeks, pushing it to new price levels.
Now that Hong Kong has approved Bitcoin ETFs, the analyst said believes BTC could go parabolic again. He said,
“Our gold team at VanEck, S-tier, believes that gold’s parabolic rise is due in large part to Chinese buying. Chinese investors want hard assets as their real estate and stock markets have proven weak.
Beware if Hong Kong Approves Bitcoin ETFs.”
This set the BTC price in a dilemma. It remains to be seen which factor – the approval of Hong Kong ETFs or tensions in the Middle East – will impact BTC prices the most in the short term.