Amidst a volatile cryptocurrency market, investors are keen to know: how low can Bitcoin go? The DeFi Report, a crypto analysis firm, suggests that Bitcoin (BTC) could potentially drop to between $40,000 and $41,000. This projection considers both macroeconomic uncertainties and Bitcoin's on-chain data.
According to Mike, chief analyst at The DeFi Report, the "most attractive buying point" hasn't been reached yet, and advises investors to remain patient. Referencing Warren Buffett's investment philosophy, Mike suggests waiting for more significant price declines, potentially 50% or more, to represent real investment opportunities. The firm's analysis focuses on the actual price, representing the average cost of all coins on the chain, noting that Bitcoin has previously fallen 14% to 30% below this level during bear markets. Another metric is the 200-week moving average, which is currently trending upwards.
External factors are also weighing on Bitcoin's price. The global energy crisis and geopolitical tensions, particularly the situation in the Middle East and its impact on oil prices and U. S. bond yields, are increasing pressure on riskier assets like Bitcoin. The analyst believes the Federal Reserve needs to see further market and labor market weakness before cutting interest rates.
The DeFi Report also commented on altcoins, suggesting that a sustained recovery is unlikely until Bitcoin establishes a bottom. This aligns with other analyses, as StoneX EN suggests that a durable low may not emerge until closer to the fourth quarter of 2026. CryptoQuant offered a similar view, stating that Bitcoin's bottom is likely to form between September and November.
