Zacks' chief equity strategist, John Blank, and Stifel Financial Corp. warn that Bitcoin (BTC) could plunge between $38,000 and $40,000. Both Wall Street firms cite forced selling, liquidations, strong ETF outflows, and a significant decline in investor interest as the cryptocurrency falls from a reported peak of nearly $125,000 to around $76,000.
What happened: strategists anticipate a drop of nearly 50%
Blank stated that Bitcoin 'winners' generally last between 12 to 18 months before exhausting their momentum. He estimates that the current pullback corresponds to historical patterns of post-peak corrections and predicts that BTC could reach $40,000, either quickly or within the next six to eight months.
Stifel issued a similar warning, setting a target of $38,000 based on past cycles. The firm cited the tightening of Federal Reserve policy, slow regulation of cryptocurrencies in the United States, and liquidity contraction as key factors.
Blank also highlighted that Robinhood is outperforming Coinbase in the current environment, despite ongoing efforts related to ETF demand and the growth of stablecoins.
Also read: What $10B Iran Crypto Probe Means For Stablecoins
Why it matters: the risk of liquidation looms
These forecasts add to a growing number of bearish calls from Wall Street. Sentiment has fallen into the 'extreme fear' zone, as the crypto market as a whole has lost over $1.7 trillion in recent months.
Stifel indicates that institutional and retail interest has significantly weakened. Both firms suggest that forced liquidations could accelerate the decline.
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