Bitcoin Predicted to Drop 20% Amidst Liquidity Cycle Peak, Silver Shines
Bitcoin Predicted to Drop 20% Amidst Liquidity Cycle Peak, Silver Shines
A 65-month liquidity cycle is nearing its Q1-Q2 2026 peak, indicating a potential 15-20% dip for Bitcoin, possibly from $109K to $82K. Meanwhile, silver has risen 13% to $33, acting as a safe haven and expected to outperform in early 2026 before Bitcoin's anticipated rebound.
Bitcoin's Price Outlook and Liquidity Cycle Analysis
According to recent market analysis, a significant 65-month liquidity cycle is approaching its peak during the first and second quarters of 2026. This cycle's trajectory suggests a notable downward pressure on Bitcoin's price, with projections indicating a potential 15-20% decline. Experts forecast that Bitcoin could see its value drop from an estimated $109,000 to around $82,000 during this period.
Conversely, traditional safe-haven assets are expected to perform strongly. Silver, for instance, has already demonstrated resilience with a 13% increase, reaching $33 per ounce. It is anticipated to continue its outperformance in early 2026. The analysis also suggests that while Bitcoin may face short-term headwinds, it is set for a rebound later in the cycle.