Zacks chief equity strategist John Blank and Stifel Financial Corp. are warning that Bitcoin (BTC) could plunge to between $38,000 and $40,000, with both Wall Street firms citing force selling, liquidations, heavy ETF outflows, and waning investor interest as the cryptocurrency tumbles from a reported peak near $125,000 to approximately $76,000.
What Happened: Strategists Forecast Nearly 50% Drop
Blank said that Bitcoin "winners" typically last 12 to 18 months before exhausting their momentum. He said the current decline fits historical patterns of post-peak corrections and predicted BTC could hit $40,000 either quickly or over the next six to eight months.
Stifel issued a similar warning, setting a $38,000 target based on past cycles. The firm cited tighter Federal Reserve policy, slow U.S. crypto regulation, and shrinking liquidity as key factors.
Blank also noted that Robinhood is outperforming Coinbase in the current environment despite ongoing efforts tied to ETF demand and stablecoin growth.
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Why It Matters: Liquidation Risk Looms
The forecasts add to a growing chorus of bearish calls from Wall Street. Sentiment has dropped into "extreme fear" territory as the broader crypto market has shed more than $1.7 trillion in recent months.
Stifel said institutional and retail interest has weakened considerably. Both firms suggest forced liquidations could accelerate the decline.
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