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Conflict with Iran could lead to a 30% drop in Bitcoin, says founder of ZX Squared Capital., 2026/03/07 12:59:43
The founder of the crypto investment firm ZX Squared Capital, CK Zheng, has indicated that Bitcoin’s price may decline by an additional 30% before the year concludes. He believes that the cryptocurrency market is currently in the deepest phase of a bear cycle, which is being exacerbated by military conflicts in the Middle East.
Zheng suggests that the ongoing downturn could persist throughout the year. He identifies the four-year Bitcoin cycle, linked to the halving mechanism, and the military escalation in Iran as significant contributing factors.
The expert cautioned that if markets continue to fall, some companies that have acquired Bitcoin as a treasury asset may begin to liquidate their reserves. This could occur due to the need to meet debt obligations amid a deteriorating economic landscape and declining valuations of tech companies.
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According to Zheng, such a scenario could trigger a chain reaction of price declines in the cryptocurrency market.
On Friday, March 6, the U.S. market experienced a downturn following a sharp increase in Brent crude oil prices, which reached $94 per barrel. The NASDAQ technology index fell by 1.59%. Subsequently, Bitcoin dropped below $68,000.
All of this is happening against the backdrop of Bitcoin’s four-year cycle, which is difficult to disrupt, as these cycles are largely shaped by market participants’ psychology, noted the founder of ZX Squared Capital. Retail investors typically buy assets during periods of excitement and sell them during times of panic, which intensifies the cyclical nature of price increases and decreases.
As a result, Zheng believes that Bitcoin continues to behave more like a speculative asset rather than a safe haven instrument akin to gold.
Previously, expert and co-managing editor at CoinDesk, Omkar Godbole, stated that a new Bitcoin rally could commence under one condition — if the price stabilizes above the $74,000 level.
