Expert Predicts Bitcoin Price Could Fall To $45,000 By End Of 2026

Bitcoin has dropped to $62,634, marking one of the largest single-day drawdowns in history. The price is down nearly 35% in 2026, with some analysts predicting further declines. This sharp sell-off has triggered a $2.5 billion liquidation event, the largest in recent memory.

The decline has hit major crypto treasuries hard, with Strategy and BitMine posting the largest paper losses. Strategy alone holds $9.2 billion in unrealized losses on its Bitcoin holdings, which were bought at an average cost of $76,000. The firm is now considering whether to sell some of its holdings to fund dividends.

BitMine is also underwater on its Ethereum investments, with $8.4 billion in paper losses. This is a result of Ethereum’s 34% drop in the last seven days. The firm, like Strategy, continues to accumulate more assets despite the losses.

Why Did This Happen?

Bitcoin’s price decline has been driven by broader market volatility, including a sell-off in other risk assets like equities and precious metals. The recent selloff was also exacerbated by thin weekend liquidity and fears around the AI trade and potential regulatory shifts.

Investor sentiment has turned cautious, with many pulling back from risk assets. This is evident in the $2.5 billion liquidation event, which saw both long and short positions wiped out. Analysts say this highlights how sensitive the crypto market has become to macroeconomic conditions.

How Did Markets React?

The market reaction has been swift and severe. Bitcoin fell below $61,000, far below Strategy’s cost basis of $76,000. The firm reported a $12.6 billion net loss in Q4 2025, a stark contrast to its $670.8 million loss in the same period in 2024.

Other crypto firms have also seen significant declines. Metaplanet, for example, holds 35,102 Bitcoin worth about $2.5 billion, but its average acquisition price is $107,000. This means the firm is sitting on large unrealized losses.

The U.S. government’s Bitcoin reserve has also lost value. The reserve, which was established by President Donald Trump, has seen its value drop by nearly $5 billion since last year. The administration has defended the reserve, citing Bitcoin’s long-term gains despite short-term volatility.

What Are Analysts Watching Next?

Analysts are closely watching Bitcoin’s price action and market sentiment. Some predict the price could fall further, with Peter Brandt forecasting a potential drop to $60,000 by Q3 2026. Meanwhile, others believe Bitcoin will rebound when the market is least expecting it.

The market is also looking for signs of stabilization. Bitcoin’s RSI has risen to 23, suggesting bearish momentum may be easing. However, the MACD indicator remains bearish, indicating further declines are possible.

Investor confidence remains a focal point. While some, like Strategy’s Michael Saylor, remain bullish, others are considering selling to fund operations. Prediction markets suggest a 32% chance that Strategy will sell some of its Bitcoin this year.