Bitcoin plunged in early February 2026, and investment firm Stifel warned the price could fall to $38,000, citing tighter Federal Reserve policy, slow U.S. crypto lawmaking, and shrinking liquidity, as shared in a Coin Bureau tweet. 🚨BITCOIN COULD FALL TO 38K
The token previously dropped to about $15,000 after the November 2022 FTX collapse, then climbed past $100,000 in December 2024, according to the coin data. These swings reflect multi-year cycles that analysts cite when making projections.
Firms with Bitcoin treasuries could face sizable losses if prices continue lower, the coverage says. Meanwhile, Grayscale and Bernstein remain bullish, suggesting BTC might follow a five-year path toward a fresh all-time high in 2026.
Market watchers also note leadership changes at the central bank and possible policy shifts. Kevin Warsh is set to become Fed chair, and early rate cuts could ease pressure, but shrinking liquidity remains the key concern (Ed. note: shrinking liquidity is cited as the primary driver).
