Bitcoin suffered its sharpest decline in four years in June. It could plummet to $40,000

June was Bitcoin’s worst month since the 2022 crypto winter. The largest cryptocurrency lost a fifth of its value, and the nature of the decline alarmed analysts: contrary to usual patterns, the market made no attempts to recover. Now, $40,000 is increasingly being cited by experts as a key benchmark.

In June, Bitcoin fell 20% to below $60,000—its worst performance since the summer of 2022. But what’s far more alarming is the continuous decline: the price never rose above its opening level on June 1, and on the last day of the month, it hit a new low. Even in bad months, the market usually sees some rallies, but now the “bears” have been driving the price down without any sign of resistance, writes CoinDesk.

During the last week of June, Bitcoin was stuck in a narrow range between $58,500 and $60,000. This in itself is not unusual, but FxPro’s chief analyst, Alex Kuptsikevich, is concerned about the level at which the market has stalled: below the marks from which the price had rebounded earlier this year. “This is a rather dangerous consolidation (pause. — Oninvest) for the ‘bulls,’” Kupcikiewicz told Coindesk. He noted that a similar situation unfolded in 2024 in a rising market, whereas now it’s happening in a falling one. If the sell-off resumes, the Bitcoin price could drop to around $40,000, the expert warned.

David Grider of Finality Capital Partners believes that Bitcoin has not yet hit bottom. “I don’t think Bitcoin and most related digital assets will bottom out before September or October,” he told Yahoo Finance. According to him, a drop to $40,000–45,000 no longer seems unlikely.

On June 30, Citibank lowered its full-year Bitcoin price forecast by more than a quarter—from $112,000 to $82,000. The bank attributed the revision to weak investor demand, record outflows from crypto ETFs, and a lack of progress on digital asset regulation in the U.S. In a negative scenario—which assumes a recession and further outflows from ETFs—Citi expects Bitcoin to trade at $53,000, according to Reuters.

Tom Lee, co-founder of Fundstrat and one of Wall Street’s leading crypto optimists, believes that attempts to time the market when buying or selling Bitcoin can cost long-term investors most of their profits: According to him, nearly all of the cryptocurrency’s annual growth is typically driven by just the top 10 trading days. To enter the market, investors should focus on a specific window in Bitcoin’s four-year cycle—roughly August through October, the expert added.

This article was AI-translated and verified by a human editor