Bitcoin price plunged to $65,422 today, extending the ongoing crash to more than 20% within just a month. Critics such as ‘gold bug’ Peter Schiff reiterated his $20K prediction amid bearish sentiment.
The crash comes as investor money pours into artificial intelligence plays, pulling capital away from the crypto market and amplifying fears of a deeper correction.
Capital Flow to AI Stocks Causing Bitcoin Price to Crash Deeper
Bitcoin price fell another 2% today, driving the top crypto to below $66K. Bitcoin price has crashed 11% in a week and more than 20% since mid-May.
The latest drop comes as US jobs data comes in higher than expected, erasing any room for a Fed rate cut this year. Notably, the Crypto Fear & Greek Index fell to 11 (extreme fear) from 23 (extreme fear) in just a day.
BTC sold by Michael Saylor’s Strategy, massive spot Bitcoin ETF outflows, and US-Iran war escalation are among the key headwinds driving the Bitcoin crash. The crypto market liquidations continue to surge amid extreme fear sentiment.
K33 Research said Bitcoin recorded its worst week since mid-February, with three-week spot ETF flows hitting their second weakest level on record. Also, funding rates have spiked to levels not seen since November 2025, with open interest near yearly highs.
The research note, titled “Summertime Sadness,” K33 Research highlighted that capital inflow into AI stocks is erasing liquidity from Bitcoin and the broader crypto market. SpaceX and Anthropic IPO plans are also driving investors away from the crypto market.
Peter Schiff Issues Dire Warning and Predicts Fall to $20K
Gold bug Peter Schiff wasted no time taking a dig at the falling Bitcoin price and MSTR stock. In an X post, he warned that “there is way too much complacency in Bitcoin for the market to be anywhere near a bottom.”
He added that once Bitcoin price breaks $50,000, “it should be a quick fall below $20K, which should be a big enough drop to shake the conviction of long-term HODLers, causing many to finally throw in the towel.”
Schiff also praised Mark Cuban for selling his Bitcoin holdings, calling it the right move after realizing BTC wasn’t “digital gold.” The veteran critic tied the current weakness to over-leveraged bets and predicted further pain ahead.
He also targeted Michael Saylor and Strategy’s STRC perpetual preferred stock. He warned of a death spiral as STRC fell below $96.50. Notably, Wall Street analysts have also trimmed MSTR stock price target after Strategy sold BTC.