Bitcoin has plunged below $69,000 after nearly $1.4 billion in leveraged crypto positions were wiped out, prompting gold bull Peter Schiff to state that the world's largest cryptocurrency has entered a long-term bear market, with further losses potentially ahead.

In a recent X post, Schiff challenged Bitcoin holders to explain why the cryptocurrency was trading below its 2021 record high, despite nearly five years of adoption, institutional investment, and growing mainstream acceptance.

'Bitcoin is in a long-term bear market. The long-term trend is down,' he wrote, warning investors not to confuse past price gains with evidence of a lasting recovery.

The sell-off has given fresh ammunition to one of Bitcoin's most outspoken critics. Bitcoin fell as low as 7% over 24 hours to $68,408 per token.

BTC Liquidations Mount as Critical Support Breaks

The market downturn triggered a substantial wave of forced selling as leveraged traders betting on higher prices were caught on the wrong side of the move.

CoinGlass data showed $1.47 billion in cryptocurrency liquidations over 24 hours, including $1.31 billion in long positions. More than 175,000 traders were liquidated.

Bitcoin was not alone in the market downturn. Ethereum fell approximately 6% to $1,921, while BNB and XRP also suffered losses.

Quantitative trader KillaXBT identified the $69,000 region, corresponding to Bitcoin's November 2021 bull-market high, as a crucial technical level. The trader warned that failure to find support there could open the door to fresh lows.

Why Schiff Believes Bitcoin's Economics Are Broken

Schiff's argument goes beyond technical charts. The economist has repeatedly questioned Bitcoin's underlying value, arguing that unlike gold, it produces no earnings, dividends, or cash flow.

He believes Bitcoin's recent demand has become increasingly dependent on financial products, exchange-traded funds, and corporate treasury buyers rather than people seeking to use it as money.

In recent remarks reported by a media outlet, Schiff argued that much of the capital entering Bitcoin could prove temporary. If ETF investors and companies holding Bitcoin begin withdrawing their money, he believes selling pressure could accelerate.

He has also challenged the argument that Bitcoin can endure several years of weakness before recovering, suggesting the current market structure makes this downturn fundamentally different. His preferred alternative remains gold, which he considers a tangible asset with monetary value rather than a speculative digital instrument.

Michael Saylor and Schiff's BTC Feud Intensifies

The latest warning also revives Schiff's long-running disagreement with Strategy chairman Michael Saylor, one of Bitcoin's most prominent corporate advocates. Schiff has repeatedly questioned Saylor's aggressive BTC accumulation strategy, particularly the company's buying and selling decisions.

In September, Schiff highlighted Strategy's sale of 6,948 Bitcoin between late May and early August for approximately $431.8 million, before criticising Saylor for subsequently buying Bitcoin back at prices above $80,000.

Schiff predicted that Strategy could eventually sell again at lower prices, questioning the sustainability of its approach. He also dismissed Saylor's bullish interpretation of the stalled Clarity Act, arguing that the executive would have portrayed either legislative outcome as positive for Bitcoin.

For Saylor, Bitcoin remains a long-term strategic asset rather than a short-term trading opportunity, but Schiff's warning comes at an uncomfortable moment for crypto bulls as leveraged investors face substantial losses.

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