Analysts Predict Bitcoin Price Could Lose $100K: Here’s Why

Now that tensions between Israel and Iran have temporarily eased, analysts are turning their attention back to Bitcoin’s next major move. Earlier in the week, Bitcoin price briefly dipped below the $100,000 mark following Iran’s missile strikes on U.S. military bases in Qatar. Although the price rebounded to $108,000 by Wednesday, derivatives data suggests that investor confidence may be weakening. The question now is whether a deeper correction is on the horizon.

On Wednesday, Bitcoin’s perpetual futures funding rate dropped to its lowest in seven weeks, a rare move, especially with prices climbing. In normal conditions, traders holding long positions pay a fee to keep leverage, so negative rates point to accumulation of short positions.

Part of the shift may be tied to wider geopolitical and economic uncertainty. The U.S. trade war, reignited in April, is now approaching key deadlines. An agreement with the eurozone expires on July 9, renewing fears of escalated tensions. With over 50 tariff changes since 2017, the Trump administration’s unpredictable stance continues to fuel investor anxiety.

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Economic Worries and AI Valuation Hype Add Pressure

The latest U.S. GDP report showed a 0.5% year-over-year contraction in Q1, largely due to a growing trade deficit. Yet, small-cap U.S. stocks are rallying, the Russell 2000 index hit a four-month high, while Bitcoin struggles below $112,000. This divergence is frustrating for BTC bulls.

Additionally, concerns over inflated valuations driven by AI hype are affecting sentiment. Gartner analysts have warned that most “agentic AI” projects are still experimental and often misused. As investors grow more cautious, profit-taking above $105,000 has become more likely.

A potential catalyst for a selloff came from Bit Digital, a publicly listed Bitcoin miner, which announced plans to exit BTC mining and shift reserves into Ether. As of March 31, the company held 417.6 BTC and 24,434 ETH. This unexpected pivot raises the risk that other miners may follow, especially with mining profitability hitting a two-month low.

The firm also disclosed a $150 million public offering of 75 million ordinary shares at $2 each, aiming to use the funds to buy more Ether and focus on staking. After the announcement, Bit Digital’s stock dropped nearly 19% over the week, closing at $1.99 on Friday, including a 15% single-day fall. Shares fell to as low as $1.86 before a modest after-hours recovery.

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For Bitcoin Price, Two Possible Scenarios – But Not a Collapse

Macroeconomic trends still support a bullish long-term outlook, including pressure on central banks to maintain loose monetary policy, but short-term headwinds remain. If miners start liquidating and derivatives data continue to reflect caution, Bitcoin could retest the $100,000 level before making another push higher.

1. Steep Pullback: The market often corrects sharply without strong long-side conviction once the squeeze is over.
2. Continuation Rally: If the rally gains broader support, funding flips positive and prices resume climbing after a brief pause.

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