According to CoinDesk, CK Zheng, founder of cryptocurrency hedge fund ZX Squared Capital, stated that Bitcoin has entered a deep bear market phase. As the impact of the four-year cycle intensifies, prices could decline by approximately 30% further by 2026. Bitcoin reached a historical high of over $126,000 in October 2025, roughly 16–18 months after the April 2024 halving, and has since retraced to around $68,000—largely aligning with the four-year cycle centered on halving events. Retail investor behavior—buying aggressively during market euphoria and selling in panic—has amplified this bear cycle, while institutional adoption remains limited, with crypto ETFs and digital asset reserve companies accounting for only about 10% of the overall market. In this bear environment, companies holding Bitcoin as a reserve asset may be forced to sell due to debt obligations, further exacerbating downward pressure on the market.
Bitcoin Enters a Deep Bear Market, May Drop 30% by 2026
TechFlowShare
Summary
Bitcoin analysis from TechFlow indicates that Bitcoin has entered a deep bear market, according to CK Zheng of ZX Squared Capital. He forecasts a potential 30% price decline by 2026 due to the four-year cycle. After reaching $126,000 in October 2025, Bitcoin is now trading near $68,000. Retail investor behavior and limited institutional adoption are exacerbating the downward trend. Crypto ETFs and reserve firms hold only 10% of the market. In a weak environment, companies holding Bitcoin may be forced to sell to cover debts, increasing downward pressure.
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