Since Bitcoin has dropped below $58,000, prominent figure in the cryptocurrency space Arthur Hayes has made a daring prediction: he believes that Bitcoin will now fall below $50,000.

The timing of this call indicates a very bearish short-term outlook, as it coincides with one of Hayes' first open public announcements of his short position on Bitcoin. Hayes recently posted, saying Bitcoin is looking heavy, and he is aiming at the sub-$50,000 price level, opening a short and asking for prayers.

This attitude is consistent with the market's general bearishness, as institutional investors have been noticeably leaving the market, and the general pessimism regarding the price of Bitcoin is still present. A further indication of the dire situation is the significant withdrawals from Bitcoin spot ETFs that have been occurring for the past seven days, indicating a decline in institutional investor interest.

BTC/USDT Chart by TradingView

A net outflow of $211 million occurred on Sept. 5, with Grayscale's GBTC ETF accounting for $23.2 million of that total. The outflow from Bitwise's BITB ETF added another $30 million, and the outflow from Fidelity's FBTC ETF was even more striking at $149 million. As investors are still reluctant to enter or hold positions in the current market environment, this ongoing capital outflow has significantly pushed down the price of Bitcoin. 

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The extent of institutional withdrawal from Bitcoin spot ETFs is demonstrated by the fact that the total net asset value of these funds has now fallen to $50.727 billion. Hayes' prediction that Bitcoin would fall below $50,000 does not seem implausible, given the current bearish sentiment.

The graph unmistakably depicts Bitcoin as being in a downward price channel and surpassing important support levels like the 200 EMA. A decline to levels below $50,000 may be feasible in the upcoming days, due to ongoing outflows and impending uncertainty.