Bitcoin slipped below the $69,000 level late Thursday, marking its lowest point since August and prompting sharp criticism from longtime critic Peter Schiff. The cryptocurrency fell nearly 7% in a single day, touching a low near $68,530, while broader crypto markets saw roughly $150 billion in value erased over 48 hours. Ether traded near $1,913 amid the selloff.

Schiff declared that Bitcoin has entered a long-term bear market, citing consecutive annual losses for the first time in its history. The asset declined about 6.5% in 2025 and was down roughly 17% to 18.5% year-to-date in 2026 at the time of his comments. He argued that the recent price action, despite what he called the strongest fundamental backdrop Bitcoin has ever received, signals deeper weakness ahead.

Failure to Rally on Positive Catalysts

In a recent interview, Schiff pointed to political and institutional developments that failed to lift prices. These included support from President Donald Trump, plans for a U.S. strategic Bitcoin reserve, the launch of spot Bitcoin exchange-traded funds, and related business shifts tied to the administration. Instead of advancing, Bitcoin declined.

He described Bitcoin as “all hype,” noting it generates no income, dividends, or cash flows. Much of the current supply, he said, sits with ETF investors and corporate treasury companies rather than holders seeking to use it as money. That “hot money,” in his view, is likely to exit, potentially driving a faster decline than the prior advance.

Schiff forecast a “massive washout” that could push prices well below $50,000 and $40,000 before finding a bottom, and ultimately below $10,000. He advised against holding through the process.

He also suggested that a potential Democratic presidential victory in 2028 could lead to sales of any remaining government strategic reserve holdings, adding further pressure.

Market Conditions and Technical Picture

The drop coincided with hotter-than-expected inflation data, a firmer U.S. dollar, and disruption in the AI sector following the resignation of Nvidia CEO Jensen Huang. Analysts noted that Bitcoin has increasingly moved in tandem with the AI trade. Plans by MSCI to remove Strategy, the largest corporate Bitcoin holder, from its global indexes after a November 30 rebalance also weighed on sentiment, with Strategy shares falling 7.84%.

Technically, Bitcoin trades below both its 50-day and 200-day moving averages, near $78,000 and $76,000 respectively. The daily relative strength index sits near 25, deep in oversold territory, yet momentum indicators continue to favor sellers. Nearest support is identified around $63,000; a break below that level could open a path toward $59,000. Overhead resistance clusters near $75,000 just under the 200-day average.

Selling pressure has concentrated in derivatives markets, with futures cumulative volume delta deeply negative and open interest declining. Bitcoin is down about 33% over the past year and roughly 18% over the past 30 days, with acceleration in the most recent week.

Scrutiny of Strategy’s Preferred Stock Yield

Schiff separately challenged the assumptions behind Strategy’s STRC preferred stock, which carries a 12% annualized yield based on a $100 stated amount. He argued the structure depends on Bitcoin appreciating 30% annually so the company can fund payments while remaining profitable. Recent declines of 6.5% in 2025 and roughly 17% so far in 2026, he said, undermine that premise.

Strategy has disclosed bitcoin sales totaling approximately $431.8 million in 2026 to help fund preferred dividends and STRC repurchases. It reported dollar assets of about $5.07 billion as of late October, covering roughly 3.4 years of obligations. Holdings stood at 850,364 bitcoin as of early November. The company also bought back 1,887,464 STRC shares for $188.3 million in early November, funded in part by common stock sales.

Broader Macro Views

While bearish on Bitcoin, Schiff remains constructive on gold and silver. He contends that real interest rates are declining because inflation is rising faster than Federal Reserve rate increases. Money supply growth near 6% annualized remains well above the central bank’s 2% inflation target, keeping policy accommodative in his assessment. He expects the Fed will eventually cut rates and resume quantitative easing if higher borrowing costs risk recession, a path he believes would support precious metals.

Schiff dismissed the market reaction to Nvidia’s leadership change as overstated, arguing the broader AI buildout extends beyond any single executive even if the trade later corrects.

Bitcoin traded near $68,679 to $68,885 in recent sessions, down more than 3% on the day and roughly 19% year-to-date. Market participants continue to monitor whether oversold conditions produce a short-term bounce or whether selling pressure drives prices toward the next support zones.