- Investment firm Stifel projects Bitcoin’s price could decline to around $38,000.
- The forecast cites historical cycles, Federal Reserve policy, and shrinking market liquidity as key factors.
- Despite the crash, other institutions like Grayscale and Bernstein remain bullish on a long-term five-year recovery cycle.
- Bitcoin previously fell to around $15,000 in late 2022 before climbing above $100,000 by December 2024.
Bitcoin is experiencing a significant price crash, raising concerns among investors in early February 2026. However, this correction mirrors past volatility, as the original cryptocurrency fell to the $15,000 level after FTX‘s collapse before its dramatic recovery. Consequently, seasoned market observers suggest the current downturn may be a typical cyclical event.
Investment company Stifel has provided a stark forecast, suggesting Bitcoin could fall to $38,000. The firm’s analysis, cited by Coin Bureau, points to tighter Fed policy, slow U.S. crypto legislation, and heavy ETF outflows. Meanwhile, shrinking liquidity is identified as a primary driver behind the steep correction.
This potential drop to $38,000 could trigger substantial losses for the many corporations holding Bitcoin in their treasuries. However, not all financial institutions share this pessimistic short-term view. Firms like Grayscale and Bernstein argue BTC may be following a longer five-year path that could lead to new highs.
The market’s direction remains uncertain as it reacts to multiple macroeconomic pressures. All eyes are now on incoming Federal Reserve Chair Kevin Warsh, whose potential rate cuts might offer some stability. The ongoing liquidity crunch, however, continues to be a major concern for the near term.
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