Bitcoin's price decline has ignited theories of it falling all the way to zero — why?
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Key Takeaways
Stifel Financial warned Bitcoin could slide to $38,000.
Crypto market sentiment has plunged sharply.
Bitcoin’s price remains technically weak.
Bitcoin price could face a deeper selloff toward $38,000 as investor sentiment deteriorates and liquidity conditions tighten, according to U.S. investment bank Stifel Financial, which warned that BTC remains vulnerable to further downside.
The caution comes as broader crypto markets reel from heavy selling pressure, pushing sentiment gauges into “extreme fear” territory and raising questions over whether Bitcoin has reached a near-term bottom.
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Stifel said Bitcoin’s current decline bears similarities to past market cycles that unfolded during periods of restrictive U.S. monetary policy and waning speculative appetite.
STIFEL WARNS BITCOIN COULD DROP TO $38K
Stifel says Bitcoin could fall to $38,000 based on past cycles, citing tighter Fed policy, slowing U.S. crypto regulation, shrinking liquidity, and heavy ETF outflows. Sentiment has sunk into “extreme fear,” showing waning institutional…
Persistent outflows from spot Bitcoin exchange-traded funds.
Taken together, those factors could pull Bitcoin down to around $38,000, the firm said.
Sentiment Sinks Into “Extreme Fear”
The warning coincides with a sharp deterioration in crypto market sentiment.
The Crypto Fear & Greed Index slid from “Fear” to “Extreme Fear,” dropping to a reading of 14 — its lowest level in roughly six weeks.
The index, scaled from 1 to 100, provides a quick snapshot of whether the market is leaning towards fear or greed, which can heavily influence asset prices.
The Crypto Fear and Greed Index fell sharply | Source: CoinMarketCap
Technical indicators across much of the market point to heavy stress.
Relative Strength Index readings for many major tokens are deeply oversold, underscoring the intensity of recent selling and the lack of a clear directional bias.
Bitcoin’s Price Breakdown Deepens
Bitcoin’s price was trading near $71,000 at the time of publishing, while the total cryptocurrency market capitalization fell to its weakest level since April 2025.
Despite a modest rebound attempt, Bitcoin remains under notable technical pressure, according to Victor Olanrewaju, a market analyst at CCN.
“BTC lost the 0.382 Fibonacci retracement around $93,300 and failed to reclaim the 0.236 level near $85,500, which has now turned into strong resistance.”
Momentum indicators continue to reinforce the bearish case.
The 20-day exponential moving average, near $84,400, is sloping downward, while the Awesome Oscillator remains deeply negative with expanding red bars — a signal of accelerating downside momentum rather than seller exhaustion.
Until Bitcoin decisively reclaims resistance near $85,500, he added, the asset is likely to remain in a corrective phase.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
