Stifel Warns Bitcoin Could Drop to $38k: Here Is Why

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Stifel Warns Bitcoin Could Drop to k: Here Is Why — Why Crypto Market Is Down Today Bitcoin Altcoins Slide After Fed Update 1 1.webp.webp

Stifel Financial Corp. has recently made a bold prediction regarding the future of Bitcoin (BTC) price. With Bitcoin experiencing a significant decline of 42% from its peak, reaching a 14-month low of around $72k, Stifel has warned that the flagship cryptocurrency is on the verge of further capitulation, setting a target of $38k.

The crypto market as a whole has seen losses exceeding $1.7 trillion in recent months, leading Stifel to caution that both institutional and retail interest in Bitcoin has significantly decreased. As a result, the financial giant believes that extreme fear in the market will drive Bitcoin’s price down to $38,000 in the coming months.

Stifel’s prediction is based on historical cycles, with a potential peak reached in October 2025. The bank pointed to factors such as the Federal Reserve’s tightening policy, slow progress in U.S. crypto regulations, diminishing liquidity, and significant outflows from spot BTC ETFs as indicators of an impending major selloff.

Looking at the bigger picture, Bitcoin is poised for a potential exponential rally by the end of 2026, supported by favorable liquidity dynamics. Additionally, the weakening U.S. dollar and the anticipated reversal of Gold prices suggest a bullish outlook for Bitcoin.

According to Mike Novogratz, CEO of Galaxy Digital, Bitcoin’s price is nearing its bear market bottom. There are claims that Bitcoin’s price has been suppressed through paper contracts by traditional banks, similar to what has been seen with Silver.

Despite the current challenges, Bitcoin is expected to rebound due to a notable decrease in its supply amid growing demand. Senator Cynthia Lummis recently advocated for Treasury Secretary Scott Bessent to consider buying Bitcoin using the country’s Gold reserves.

As the cryptocurrency market continues to evolve, it is essential to stay informed and conduct thorough research before making any investment decisions. CoinPedia remains committed to providing accurate and timely updates on cryptocurrency and blockchain developments, ensuring transparency and reliability in all content.