Traders Warn Bitcoin Price Could Fall to $40,000 — Even as Strategy Adds Another $100M

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Kurt RobsonTue, December 30, 2025 at 9:30 AM GMT+1 4 min readStrategy continues to purchase Bitcoin as worries of a price crash grow.Key TakeawaysSome traders warn Bitcoin could drop to $40,000 early next year.Despite volatility, Strategy added $108.8 million worth of Bitcoin.Several industry leaders said that traditional boom-and-bust cycles.Bitcoin’s price continued to slide on Tuesday as traders warned of a potential sharp correction early next year, even as major corporate holder Strategy moved forward with another nine-figure purchase.Bitcoin was trading at $87,403 at the time of reporting, down nearly 3% over the past 24 hours, as investors weighed warnings of a possible “mega crash” toward the $40,000 level.Fears of a deeper pullback intensified after a widely shared post on X compared Bitcoin’s current chart structure to the 2021 market peak.“Bitcoin is now showing the same setup we saw in 2021,” one trader wrote, alongside technical charts that circulated broadly among market participants.The comments reflect a persistent belief among some traders that Bitcoin continues to follow a four-year boom-and-bust cycle linked to halving events.Historically, these halvings have preceded major price peaks followed by steep drawdowns.“History might be repeating itself again,” another X user replied.Others, however, argue that the four-year cycle may no longer apply, citing increased institutional involvement in the market.“The situation is completely different now,” one X user wrote.Several prominent industry figures have also pushed back against the idea that Bitcoin is headed for a cycle-driven crash.Speaking at Binance Blockchain Week, Fundstrat’s Tom Lee said Bitcoin’s four-year cycle is no longer a reliable framework for understanding the market.“We’re going to shatter the Bitcoin four-year cycle,” Lee said.He pointed to recent price action as evidence, noting that Bitcoin rose 36% earlier in the year before reversing sharply.“Crypto was up 36% until Oct. 10, and then it’s gone straight down,” Lee said.According to Lee, the decline has been driven less by halving dynamics and more by structural factors, particularly market deleveraging.He compared the current environment to the period following the collapse of crypto exchange FTX.Ark Invest CEO Cathie Wood has also argued that the four-year cycle is being 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