Summary
- Stifel said that, based on past market cycles, the price of Bitcoin (BTC) could fall to $38,000.
- Stifel said it cited downside factors including the Federal Reserve’s restrictive monetary policy, a slowdown in the pace of crypto-asset regulatory discussions, declining market liquidity, and the possibility of outflows from spot Bitcoin ETFs.
- Stifel said market sentiment has entered a phase of extreme fear, with market participation declining among both institutional and retail investors.
A forecast has emerged that Bitcoin (BTC) could fall to $38,000 based on past market cycles.
According to Walter Bloomberg, a breaking-news economics account, on the 4th (local time), investment bank Stifel said in a recent analytical report that Bitcoin’s price could face additional downside pressure.
Stifel cited the following as downside factors: △ the Federal Reserve’s restrictive monetary policy stance △ a slowdown in the pace of regulatory discussions on crypto assets in the US △ shrinking market liquidity △ the possibility of large-scale outflows from spot Bitcoin ETFs.
The report explained that an analysis of past Bitcoin price cycles shows repeated instances in which, during correction phases, price levels formed below the current level.
Stifel also said, “Market sentiment appears to have entered a phase of extreme fear,” adding that “this suggests declining market participation among both institutional and retail investors.”
However, the report did not mention a specific timing for the decline or the possibility of a short-term rebound.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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