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- Bloomberg’s Mike McGlone says Bitcoin could drop to $10,000 if risks persist.
- BTC shows stronger correlation with risk assets like the S&P 500.
- Forecasts remain divided, with some predicting $200,000 by year-end.
Bitcoin (BTC) may face a severe correction, potentially falling back to $10,000, according to Bloomberg Intelligence Senior Commodity Strategist Mike McGlone. Speaking with David Lin in a recent interview, McGlone argued that despite Bitcoin’s record highs in 2025, macroeconomic and market risks could trigger a sharp downturn.
Bitcoin’s Correlation With Risk Assets Grows
McGlone highlighted Bitcoin’s increasing correlation with traditional risk assets like the S&P 500, which recently hit a record high. He suggested that BTC is behaving more like a high-beta, speculative bubble asset, leaving it vulnerable to broader market corrections.
“Bitcoin has added a zero several times in its history,” McGlone said, “but it often loses those gains during corrections.” He warned that if the S&P 500 retraces to 4,000 points and with the U.S. stock market cap-to-GDP ratio sitting at an overheated 2.2, Bitcoin could follow suit with a dramatic reset.
Macro Pressures Add to Downside Risk
The analyst pointed to U.S. tariff policies under President Donald Trump and growing volatility as additional headwinds. These factors, he argued, could magnify Bitcoin’s downside if traditional markets pull back.
This outlook implies a potential 90% decline from Bitcoin’s current price levels, a scenario that has rattled parts of the digital asset community.
Also Read: When Will Altseason Start? Analysts Say ETFs Are the Missing Catalyst
Contrasting Views: Bearish vs. Bullish Forecasts
While McGlone’s warning leans bearish, other analysts remain bullish. Bernstein Research recently projected Bitcoin could surge to $200,000 by year-end, citing post-halving supply dynamics and ongoing ETF-driven demand.
The stark contrast between forecasts highlights the deep uncertainty in Bitcoin’s market trajectory, where macroeconomic risks clash with long-term adoption narratives.
A Market at a Crossroads
McGlone’s $10,000 warning underscores Bitcoin’s vulnerability as a speculative asset tied increasingly to global financial cycles. Whether the cryptocurrency faces a historic correction or achieves new highs may depend on how macro risks unfold in the months ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
