An investment firm says Bitcoin could drop another 30% as its four-year cycle gains strength.

ZX Squared Capital's CK Zheng: Bitcoin's Deep Bear Market Could Worsen—Another 30% Drop Possible in 2026

The bear market isn't done with Bitcoin yet. According to CK Zheng, founder of ZX Squared Capital, the pain could stretch further—potentially another 30% drop this year. His diagnosis? Bitcoin is firmly in deep bear territory, and the four-year cycle is doing what it always does.

Since peaking above $126,000 last October, Bitcoin's nearly halved. It's now hovering around $68,000. And Zheng thinks the worst may not be over, especially with geopolitical shocks like the Iran war adding fuel to the fire.

The Four-Year Cycle Keeps Repeating Crypto veterans know the rhythm: a halving every four years, a peak 16-18 months later, then a year-long bear hangover. The last halving was April 2024. The peak came October 2025. And now? We're in the drawn-out comedown.

Zheng says this cycle is nearly impossible to break—not because of code, but because of people. Retail investors buy the hype, sell the panic. Predictable as clockwork. And that psychology locks in the boom-and-bust pattern year after year.

That's why Bitcoin still acts like a speculative asset, not a digital gold safe haven. Institutional adoption? Still slow, still small. Zheng warns that some companies holding Bitcoin on their balance sheets might be forced to sell to cover debt, which could spiral into more selling.

"Crypto ETFs and treasury companies make up only about 10% of the market," he notes. "If they're forced to sell during this bear phase, it could create a vicious cycle."

Bottom line: Zheng isn't calling the bottom yet. The next cycle, he says, hasn't begun.