Bitcoin – How BTC could turn its recent price crash into an $87K rally

Is Bitcoin’s [BTC] growing negative correlation to other risk assets becoming a key headwind?

It has been less than 48 hours since the most recent crypto wipeout resulted in over $1 billion in liquidations, pushing Bitcoin close to $70k, and sending market sentiment into extreme fear. While Bitcoin continues to trade below $75k, the S&P500 has risen by over 2%, pointing to stronger resilience despite the ongoing FUD.

This growing disparity raises questions about Bitcoin’s performance as a macro hedge this cycle. Notably, Peter Schiff shares his view. As his post below highlights, the long-time Bitcoin critic has warned of a deeper BTC correction, citing its underperformance compared to other risk assets. Even precious metals such as gold and silver have gained over 2%, further widening the performance gap.

Against this backdrop, positioning for further downside is starting to make more sense.

According to CoinGlass data, Bitcoin’s long/short ratio is showing bearish signs as it fell back from a 3-month high of 1.4 on the 7th of November, indicating traders are returning to shorting their positions, signaling weaker confidence in BTC’s near-term recovery. The key takeaway? There is no downside liquidity left to be hunted. The recent $1 billion liquidation event has wiped out almost all long-side liquidity.