The institutional bull Strategy, known for its regular weekly Bitcoin (BTC) purchases, did what was feared and made its first Bitcoin sale.
This caused a decline in Bitcoin, with the price falling below $72,000.
This situation has led to expectations of further decline in the BTC price, with a Bloomberg strategist stating that in the worst-case scenario, BTC could fall to $10,000.
In his latest analysis, Mike McGlone, senior macro strategist at Bloomberg Intelligence, predicted that Bitcoin could fall to around $10,000, its long-term average.
McGlone noted that the correlation between cryptocurrencies and stocks broke down in late May, when the cryptocurrency market showed weakness and the S&P 500 index reached an all-time high.
At this point, McGlone describes Bitcoin’s divergence from the S&P 500, which hit a record high in late May, as a significant sell signal, noting that this breakout could cause the Bitcoin price to fall towards $10,000.
The analyst cited another bearish signal: the Bloomberg Galaxy Crypto Index (BGCI) falling below the 2,000 level, which is half of its 2025 peak.
In conclusion, McGlone analyzed that the market has entered a broad bubble burst phase and that Bitcoin could experience a correction similar to the one in 2018.
However, some analysts in the sector argue that the $10,000 scenario is unlikely, citing the strong demand base from BlackRock and Fidelity’s spot Bitcoin ETFs.
However, McGlone still leaves a chance for Bitcoin to recover, marking the $75,000 level as a red line. Only a sustained and secure consolidation above this level could invalidate the bearish scenario.
As you may recall, McGlone had previously made similar predictions in February and April regarding a drop to $10,000.
*This is not investment advice.
