Analysts expect Bitcoin recovery after a short-term downturn and policy shifts.

Cryptocurrency markets fell as global equities and precious metals sold off, while bitcoin liquidations exacerbated downside moves.

U.S. stock futures fell Sunday, after a weekend slide by bitcoin and Friday’s massive sell-off in precious metals capped a tumultuous first month of 2026.

The mean closing price of BTC over the past 200 weeks is a widely used long-term momentum indicator and a baseline for the traditional-four year bitcoin cycle. It has marked a market bottom in every previous cycle, and is currently at $57,926.

Saylor hints at Bitcoin buy after crypto drops below $76K cost. Company raises dividend to 11.25% for more purchases.

Why is Bitcoin dropping? The cryptocurrency slipped below $80,000 amid a deep crisis of belief, driven by hawkish Fed signals, geopolitical tensions and deleveraging. Prices fell 40% from 2025 peaks as liquidity thins and demand fades.

This surge in demand for lower-strike puts contrasts with the post-Trump-election pattern of enthusiasm for high-strike calls.

“Our worst-case scenario assumes a decline to the $1.8 trillion to $2 trillion range, with an extension to 161.8% of the initial downward momentum in October-November,” Alex Kuptsikevich, FxPro chief market analyst, said in emailed comments.

Strategy (MSTR) bought 855 bitcoin for about $75.3 million at an average price near $88,000 just days before BTC’s weekend drop below $75,000.