Bitcoin Faces Potential Further Decline Amid Bearish Market Analysis

By: Isha Das

Bitcoin (BTC) has recently experienced a significant downturn, extending its losses and briefly dropping below the $67,000 mark. This decline marks the lowest price for the leading cryptocurrency since November 2024. The market has been reacting to a bearish outlook provided by market analyst Hugo Crypto, who highlighted a report from investment bank Stifel. The report suggests that Bitcoin might continue its fall, potentially reaching as low as $38,000, which would be a roughly 43% drop from current levels.

Stifel’s analysis attributes this potential decline to several macroeconomic and market-specific factors. These include the impact of the U.S. Federal Reserve's tighter monetary policy, uncertainties in U.S. crypto regulation, reduced market liquidity, and sustained outflows from Bitcoin exchange-traded funds (ETFs). Furthermore, the bank contextualizes this prediction within the historical cycles of Bitcoin, noting the peak near $126,000 in October 2025 may have set the stage for an extended drawdown phase.

Market observers have echoed these concerns, pointing to weakening Bitcoin demand and a slowdown in ETF inflows. Walter Bloomberg, a market watcher, noted the stress in derivatives markets, indicating a phase of 'forced deleveraging' where leveraged positions are rapidly unwound, which adds to the downward pressure on prices.

Technically, the $68,000 level is seen as a critical point for Bitcoin to stabilize. Staying above this level could prevent a plunge to $58,000, where the 200-week simple moving average currently sits, as per technical analyst assessments. However, Bitcoin has already lost more than 20% of its value over the past week, trading around $67,100 at the time of writing, as reported by trusted sources such as CoinGecko.