Bitcoin, the world’s largest cryptocurrency, may face a significant setback in 2026, potentially dropping as low as $69,000 according to market strategist Gareth Soloway. This prediction highlights Bitcoin’s vulnerability as part of a broader risk asset environment. Let’s delve into the key insights shared by Soloway and what this means for crypto investors.
Understanding Bitcoin’s Market Cycles
Speaking in an interview, Gareth Soloway, Chief Market Strategist at Verified Investing, emphasized that Bitcoin’s current decline aligns with historical market trends rather than being mere isolated volatility. Historically, Bitcoin has experienced major drawdowns, and this cycle might be no different, albeit at a lower percentage than in the past. Soloway commented, “My guess is Bitcoin doesn’t have its normal 75% drawdown like last cycles. Instead, look for somewhere in the 40 to 50% drawdown and then look for a base with institutional money accumulating.”
The strategist highlighted that Bitcoin may already be in the midst of this corrective phase. From a peak, the cryptocurrency has reportedly dropped 36% so far, inching closer to the potential base level between $69,000 and $74,000, which corresponds to previous cycle highs.
Potential Risks in Broader Markets
Soloway also discussed the interconnection between Bitcoin and global equity markets. He warned that a looming stock market crash could exacerbate Bitcoin’s downfall, as investors may panic and liquidate assets. While the cryptocurrency is often seen as digital gold, it still behaves as a risk asset during major market crises, a trait that may influence its price trajectory.
For equities, Soloway expressed concerns over rapid growth fueled by artificial intelligence and increasing leverage in the market, which could lead to significant corrections. Such corrections would likely trigger ripple effects across all high-risk investments, including cryptocurrencies.
Is Bitcoin Still a Good Investment?
Despite the bearish outlook, Soloway does see potential for investors willing to accumulate Bitcoin during dips. “If I had to right now, yes, I would be accumulating Bitcoin and slowly accumulating on the way down here. Absolutely,” he said. He believes institutional investors are starting to view Bitcoin as a hedge against inflation, similar to gold, which could mitigate some downside risks in the long term.
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Final Thoughts
As Bitcoin navigates a turbulent market landscape in 2026, investors should be prepared for potential price corrections while keeping an eye on broader economic indicators, including equity market performance. Institutional adoption of Bitcoin may provide some structural stability, but caution remains key for those venturing into crypto investments.
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