Bitcoin Price Drop: Institutional Investors Expect Cyclical Downturn

The price of Bitcoin has declined by around 25% in 2026, but institutional investors remain optimistic. They argue that the current downturn is cyclical rather than structural.

Regulation, Federal Reserve policy, and November's midterm elections are expected to be key drivers for Bitcoin in the second half of 2026.

The decline has erased much of the enthusiasm sparked by spot ETFs and growing institutional adoption last year. However, analysts believe this is not a structural breakdown, but rather another chapter in Bitcoin's boom-and-bust cycle.

Unlike previous crypto crashes, the current selloff has been driven by macroeconomic forces such as higher bond yields, tighter financial conditions, and a broad retreat from risk assets.