Bitcoin Crashes Below $67,000 As Stifel Warns Of Potential Drop To $38,000

Overview

Bitcoin has experienced a significant sell-off, dropping below the $67,000 mark, a level not seen since November 2024. This downturn has been influenced by a bearish outlook from investment bank Stifel, which suggests further declines could occur.

Recent Developments

On Thursday, Bitcoin (BTC) fell sharply, briefly dipping below $67,000. This marked its lowest price point since November 2024 and represents a continuation of a downward trend in the cryptocurrency market. The sell-off was notably influenced by insights from market analyst Hugo Crypto, who referenced a report from Stifel that detailed a pessimistic forecast for Bitcoin’s future.

Stifel’s analysis indicates that Bitcoin could potentially decline further to $38,000. This forecast implies a drop of approximately 43% from current levels, which would bring Bitcoin back to price points not seen since January 2024. Stifel attributes this bearish outlook to several macroeconomic and market-specific factors. These include the tightening of US Federal Reserve policy, ongoing uncertainty surrounding cryptocurrency regulation in the United States, decreasing market liquidity, and ongoing outflows from spot Bitcoin exchange-traded funds (ETFs).

The report also places Bitcoin’s recent peak near $126,000 in October 2025 within the context of historical cycles, suggesting that such peaks are often followed by prolonged and substantial drawdowns.

Market observer Walter Bloomberg has echoed these concerns, highlighting a weakening demand for Bitcoin, a notable slowdown in ETF inflows, and increasing stress within derivatives markets. Bloomberg described the current situation in futures markets as a “forced deleveraging” phase, where leveraged positions are rapidly unwound, contributing to the selling pressure.

Technical Analysis

From a technical standpoint, analysts are focusing on the $68,000 level as a critical threshold for Bitcoin. According to analyst MartyParty, reclaiming this level is essential for stabilizing the cryptocurrency in the near term. This price point aligns with the 200-week exponential moving average, a key indicator during major market corrections. Should Bitcoin fail to maintain its position above this critical zone, it may face further declines toward the 200-week simple moving average, which is currently situated near $58,000.

As of the latest data, Bitcoin was trading around $67,100, reflecting a decline of roughly 8% on the day and more than 20% over the previous week.

From author

The current landscape for Bitcoin reveals a complex interplay of macroeconomic pressures and market sentiment. The bearish outlook from Stifel, coupled with observed trends in ETF outflows and technical analysis, suggests that the cryptocurrency faces significant challenges ahead. Investors and market participants will need to closely monitor these developments to navigate the uncertain terrain of the crypto market.

Impact on the crypto market

• Bitcoin’s decline below $67,000 signifies a critical moment in the market, potentially impacting investor sentiment and confidence.
• Stifel’s forecast of a drop to $38,000 raises alarms about the broader implications for institutional interest and market liquidity.
• The ongoing outflows from Bitcoin ETFs indicate a potential reduction in institutional demand, which could lead to further price declines.
• The “forced deleveraging” phase in futures markets may exacerbate selling pressure, leading to more volatility.
• The importance of the $68,000 level as a technical support point emphasizes the precarious nature of Bitcoin’s current market position.