- Bloomberg’s Mike McGlone predicts Bitcoin could crash 90% to $10,000 as macro risks.
- Analyst cites “sell-the-news” dynamic after ETF approvals and MicroStrategy’s 10x gains.
- McGlone warns the majority of 28 million altcoins will go to zero amid S&P 500 correction.
Bitcoin (BTC) price has topped out and is on the cusp of a major crash to $10k. This is according to a bold prediction released by Mike McGlone, a senior commodity strategist at Bloomberg Intelligence.
“Own it or wear it, I expect Bitcoin to revert back toward $10,000,” McGlone stated..
Related: Why Bitcoin Stays Volatile After the Latest US Jobs Report
Bitcoin Path to $10k: McGlone Blames Sell-the-News Traders
According to McGlone, Bitcoin price is in a bear market, and the odds of a 90% crash to $10k are high. He compared the current Bitcoin price action with 2019, and the post-2007 market structure.
During the 2019 scenario, Bitcoin price was trapped in a multi-month bear market after the Federal Reserve began cutting rates and a mild Quantitative Easing (QE). Notably, Bitcoin price dropped over 71% during its 2019/2020 bear market before experiencing its 2021 bull run.
Related: Why Crypto Is Crashing Today: Macro Risks, Liquidations, and Central Banks
According to McGlone, major Bitcoin investors have already accomplished huge profits, and many of the forward-looking events have already happened. For instance, McGlone stated that Michael Saylor’s Strategy has already experienced a 10X gain and the forward-looking events such as the approval of exchange-traded funds (ETFs) in the United States, and the legalization of crypto by major jurisdictions have already happened.
As such, McGlone argued that the Bitcoin price is headed to $10k, especially if the S&P 500 index crashes akin to the 2007/2008 market reset.
A Nightmare for the 28M Altcoins
According to McGlone, the vast majority of the 28 million altcoins listed on CoinMarketCap will crash to zero. Moreover, altcoins are highly correlated to Bitcoin price action and tend to portray extremely high volatility.
Moreover, McGlone agreed with Saylor’s argument that investors buy Bitcoin with money they cannot afford to lose.
“We buy Bitcoin with money we can’t afford to lose.” Michael Saylor said at the Economic Club of Miami event.
What Now?
The ultimate midterm fate for Bitcoin and the 28 million altcoins, amid the palpable fear of further capitulation, will be heavily influenced by the Clarity Act in the United States. Already, the U.S. House has passed the Clarity Act, but the slow Senate’s bipartisan efforts will delay the altcoin’s legal clarity potentially to 2026.
According to CryptoQuant, crypto holders should monitor if Bitcoin price will hold above $81.5 before capitulating.
“If Bitcoin holds above the TMMP ($81.5K) while AVIV stabilizes (0.8-0.9), it suggests investors are absorbing supply and defending their cost basis. If price loses TMMP and AVIV continues to compress, it means profitability is fading, and confidence is weakening,” CryptoQuant noted.
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Source: https://coinedition.com/bloomberg-strategist-warns-of-sell-the-news-event-sending-bitcoin-to-10k/
