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Bitcoin is facing renewed pressure as Atlas Capital CEO Reza Bundy warned that the asset could fall sharply before any long-term recovery. His comments add to wider market concern as BTC trades near $62,500 and sellers try to push the price below $60,000. Meanwhile, fresh pressure from Strategy’s leveraged Bitcoin model has added another risk factor for market sentiment.
Reza Bundy, Chief Executive of Atlas Capital, said Bitcoin could face a drawdown of up to 70% within six months. Speaking to CoinDesk at the Proof of Talk conference in Paris, Bundy said the firm sees a major short-term decline if stock markets also fall.
“We think there's going to be a massive drawdown in bitcoin in the next six months,” said Bundy. He further added that the decline ‘could be up to 70%,’ with Atlas estimating a possible range of $26,000 to $30,000.
Bundy linked the warning to broader macro risk. He said Bitcoin could fall harder than equities if stock markets face a correction similar to part of the 2008 decline. According to him, Bitcoin now behaves more like a volatile risk asset than an inflation hedge.
His forecast reflects work done with Atlas Capital co-founder and Chief Economist Nouriel Roubini. Roubini, known as ‘Dr. Doom,’ has long criticized Bitcoin and has described it as a speculative asset without clear fundamental value.
Bundy is not bearish on Bitcoin in every time frame. He said the asset could still reach between $150,000 and $500,000 in the coming years, depending on global economic conditions.
His longer-term view rests on Bitcoin’s original role as an alternative store of value. Bundy said rising government debt, money creation, and falling trust in traditional currencies could support demand for scarce assets over time.
Under Atlas Capital’s ‘Controlled Expansion’ case, Bitcoin could reach $150,000 to $250,000. This scenario assumes stable growth and controlled inflation. Meanwhile, under a ‘Fiscal Dominance’ case, governments print more money to manage debt, which could push Bitcoin toward $250,000 to $500,000.
Atlas also outlined weaker paths. A ‘Global Conflict’ case could bring short-term panic before Bitcoin’s neutral asset case gains attention. A ‘Deflationary Recession’ could keep Bitcoin weak until central banks add liquidity back into markets.
For now, Bundy said Atlas is waiting before adding Bitcoin to its strategy. He further added the firm does not want exposure during a possible market correction. Bundy noted that, “Once the correction happens, we will make our final decision to include or not.”
Bitcoin’s weakness also comes as analysts watch Strategy’s balance sheet model. Strategy sold 32 BTC on Monday, a small part of its 843,706 BTC holdings. Still, the sale raised concern as Bitcoin has dropped sharply since then.
Grayscale head of research Zach Pandl said Strategy’s leveraged model is now under pressure. He noted that the shift by one of the largest Bitcoin holders has weighed on market sentiment. Strategy also sold $128 million worth of shares, while its stock fell to a two-month low near $126.
Pandl also pointed to pressure on Stretch, Strategy’s variable-rate preferred equity instrument. Stretch is designed to trade near $100 while paying an 11.5% dividend. However, it recently traded near $95, showing that investors now seek a higher return.
If Strategy raises the dividend to support Stretch, it could face higher cash needs. That may increase pressure to sell more Bitcoin if market conditions remain weak. “Strategy’s levered business model is under pressure,” Pandl noted.
Meanwhile, analyst Ted Pillows said Bitcoin’s fall toward $61,000 shows sellers remain in control. He said a move below $60,000 could trigger full capitulation.
Even so, CoinEx analyst Jeff Ko said Strategy’s sale may give the firm more flexibility to manage balance sheet risk.
Also Read: Bitcoin Price Today: BTC Drops to $62K Amid Heavy Selling, ETF Outflows & Economic Fears
