Bitcoin (BTC) faces a stark downside risk that could send prices below the previous bear market lows, according to a new analysis from blockchain data firm CryptoQuant.
The firm warns that a confluence of geopolitical shocks, macroeconomic repricing, and fragile derivatives positioning could push the largest cryptocurrency as low as $10,000 in a worst‑case scenario — far beneath the last bear‑market trough near $15,000.
Political Shock From Trump Speech
CryptoQuant’s note comes against the backdrop of a substantial pullback from Bitcoin’s record highs. After peaking at roughly $126,000 last October, Bitcoin has retraced about 45% and has entered a months‑long consolidation range between $66,000 and $70,000.
The firm highlights recent political developments as an immediate catalyst for the downside potential. CryptoQuant points to President Donald Trump’s April 1 speech on Iran as a market‑moving event that abruptly reset expectations.
By signaling the possibility of intensified military action within the coming weeks, the speech undermined hopes for de‑escalation and prompted a broad risk‑off reaction.
In CryptoQuant’s view, this was not merely a geopolitical scare — it forced a repricing of macro conditions that matter to risk assets like Bitcoin.
As oil prices rise, inflationary pressures can return; a firmer dollar tightens dollar liquidity globally. CryptoQuant notes rising volatility — with the VIX near 25 — and widening Treasury spreads, both of which are symptomatic of deteriorating liquidity.
Three Possible Bitcoin Outcomes
CryptoQuant lays out a range of possible outcomes. In a moderate stress event, the firm estimates Bitcoin could fall from the $70,000 area to roughly $50,000 — a 25–30% decline.
If Bitcoin exchange-traded fund (ETF) outflows continue and spot demand remains soft, the medium‑term downside expands substantially, with prices potentially sliding into the $30,000–$20,000 range, representing declines of 60–70% from current levels.
In the extreme scenario — for example, a prolonged closure of the Strait of Hormuz or a sustained major conflict — global liquidity could seize up more completely.
CryptoQuant suggests that in such circumstances, equities could plunge more than 30% and oil could spike to $150–$200 per barrel, conditions that could drive Bitcoin toward the $10,000 mark, an 85% drop from current trading prices.
Featured image from OpenArt, chart from TradingView.com
Be the first to comment