Stifel predicts that Bitcoin could drop to $38,000.

Stifel's Frightening Prediction

Stifel analysts predict that Bitcoin could drop to around $38,000. This prediction is based on a trend line drawn from the bottom points of major crashes since 2010.

Economic Factors May Be Influential

The firm argues that the relationship between Bitcoin and the dollar along with global money supply will reverse by 2025. It is noted that Bitcoin is weakening while the dollar is strengthening, and liquidity is tightening.

Analysts also point out that the increasing correlation of Bitcoin with Nasdaq and growth stocks, along with the Federal Reserve's hawkish policy decisions and rising borrowing costs in the technology sector, could deepen the current decline.