Analyst predict bloodbath in crypto markets for Q2

Following the conflict in the Middle East, which has put immense pressure on Bitcoin and other Crypto Assets, Analysts are predicting a worse Q2, pointing out that Bitcoin’s recent 27% rally from $60,000 to $76,000 is merely a prelude to a catastrophic price pullback.

Respected Crypto analyst Mr Wall Street dropped a series of predictions in his X community, projecting bitcoin’s current price action at the end of Q1 and what he thinks will happen in Q2. In a recent post on X, the analyst said his earlier thesis of short-term bullishness and mid-term bearishness has now fully transformed to a bearish stance across both timeframes.

According to him, Bitcoin’s 27% rally from $60,000 to $76,000 was driven by market makers creating liquidity for a larger downside move. He added that even if Bitcoin surges higher to sweep up upside liquidity. The surge will be temporary, followed by a broader decline.

Bitcoin Could Possibly Drop to $40,000

Mr Wallstreet, in his prediction, revealed that a large amount of liquidity has built up below Bitcoin’s current price in recent weeks. These price levels align with Bitcoin’s price in 2024 sumer suggesting the thesis that Bitcoin could potentially drop to $40,000 – $45,000.

From a fundamental analysis viewpoint, the ongoing faceoff between the United States and Iran is another factor to consider.

A possible escalation between the two countries could trigger a global recession, driven largely by a steep rise in oil prices, which would inevitably affect the price of assets like Bitcoin.

Blockchain Firms Shut Down Following Unbearable Bearish Market

The first quarter of 2026 has proven to be a difficult period for various blockchain firms and their business models. The bearish market saw the flagship crypto asset, Bitcoin, drop from over $100,000 to as low as $60,000, drying up lots of liquidity in the market. Business models that made sense before no longer do, leading to the shutdown of blockchain firms by their founders and management.

Notable blockchain firms to shut down in the first quarter of 2026 include the Liquid staking firm Milky Way and the NFT marketplace Nifty Gateway. Others include Polynomial, which raised $1.1 million in a pre-seed round and processed more than 27 million transactions. Despite the positive numbers, the platform had to shut down in Q1 2026 due to limited liquidity.

At press time, Bitcoin is trading at $66,000, down 3.1% over the last 24 hours. The flagship crypto asset is down 47.4% from its all-time high of $126,080.

Last updated: April 2, 2026