Bitcoin (BTC) Price Predictions: Experts See Drop Below $50,000 as 'Inevitable'

As Bitcoin (BTC) hovers near the $55,000 mark, experts are sounding alarms about a potential drop below $50,000, citing critical market indicators.

Bitcoin (BTC) price hovered near the $55,000 level on Friday, withксперts warning of a potential drop below $50,000 as critical market indicators point to a bearish scenario.

On Friday morning, BTC was trading at $56,680, up 0.1% in the past 24 hours. The world’s largest cryptocurrency had hit a low of $55,282 and a high of $57,822 in the past 24 hours.

Bitcoin price movements in the past 24 hours. Source: CoinGecko

The second-largest crypto, ETH, was trading at $2,390, after seeing a 0.1% decrease in the past 24 hours.

The warnings from industry analysts come as Bitcoin and Ethereum ETFs continue to see significant outflows.

According to data from Soso Value, Bitcoin spot ETFs saw a net outflow of $211,000,000 on September 5, which marked the seventh consecutive day of withdrawals.

Of the largest losses, Fidelity Wise Origin Bitcoin Fund (FBTC) saw an outflow of $149,000,000, while Grayscale Bitcoin Trust (GBTC) saw an outflow of $23,217,500.

The total net asset value of Bitcoin spot ETFs now stands at $50,727,000,000.

Meanwhile, Ethereum also saw outflows, with spot ETFs seeing a net outflow of $152,700, data showed.

Grayscale Ethereum Trust (ETHE) saw an outflow of $7,389,500, although Grayscale Ethereum Mini Trust (ETH) saw a small outflow of $7,236,800.

Also Read: Ethereum Co-Founder to Donate All Crypto Proceeds, No More New Token Investments

Analysts from 10x Research also pointed out troubling on-chain data, observing that a peak in the supply held by short-term holders in April 2024 resembled patterns seen at the end of the 2017 and 2021 bull markets.

According to their analysis, long-term holders, or whales, began selling into rallies as early as March 2024, which stifled demand and led to price consolidation.

“A drop below $50,000 for Bitcoin appears inevitable, with most traders remaining oblivious to the severity of the situation,” the analysts stated, adding that weak U.S. Manufacturing PMI data and ongoing political uncertainties are expected to drive declines in risk assets like cryptocurrencies.

“Even interest rate cuts may not ensure higher Bitcoin prices, especially when we're seeing sharp declines in protocol revenues, which indicate reduced usage,” 10x Research noted.

As these market trends continue to unfold, they are set to be a key focus at Benzinga’s Future of Digital Assets event on Nov. 19, where industry leaders will delve into the evolving dynamics of the cryptocurrency landscape and discuss how investors can navigate the challenges ahead.

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