Bitcoin tumbled to $65,422 on Friday, deepening a month-long rout that has erased more than a fifth of its value. The slide comes as investor dollars pour into artificial intelligence stocks and funds, pulling capital out of the crypto market. Peter Schiff, a longtime Bitcoin skeptic, seized on the drop to reiterate his forecast that the cryptocurrency will fall to $20,000.
Why capital is leaving crypto
Money that was sitting in Bitcoin and other digital assets is moving into the AI sector, where companies have posted eye-popping earnings and announced massive data-center builds. This month alone, the largest AI-focused exchange-traded fund saw net inflows of $2.8 billion, while spot Bitcoin ETFs recorded net outflows for the fifth straight week. The shift is straightforward: investors chase returns, and AI has delivered them lately.
Schiff's bearish call
Peter Schiff, the economist and gold bug, used the selloff to repeat his prediction that Bitcoin is heading to $20,000. He has been making that call for years, but the current momentum is on his side — at least in the short term. Bitcoin has now lost about 22% from its May high of $84,100, breaking below key psychological support at $70,000 along the way. Schiff didn't offer a timeline for the $20,000 target, but he's not known for backing down from a bearish bet.
What traders are watching
With no major catalyst on the horizon, the path of least resistance appears lower. The next support level is around $60,000, a zone where Bitcoin bounced hard in February. If that breaks, the slide could accelerate. The AI vs. crypto capital war isn't new, but it's become more lopsided as institutional money piles into the tech sector. Crypto-native traders are left hoping for a Fed pause or a surprise regulatory decision to change the narrative.
