Bitcoin (BTC) has been fluctuating between $65,000 and $70,000 in recent days, while bearish price predictions continue.
At this point, Bloomberg Intelligence analyst Mike McGlone reiterated his warning about Bitcoin falling below $10,000.
Mike McGlone, sharing his latest analysis on LinkedIn, warned that the bubble in the cryptocurrency market has burst and that the price of Bitcoin could fall by another 85%, dropping to $10,000.
McGlone stated that Bitcoin and the cryptocurrency markets are collapsing, and reiterated his warning about Bitcoin falling below $10,000.
McGlone, who suggested that Bitcoin’s collapse could signal the next recession, noted that the discourse surrounding cryptocurrencies is changing for various reasons.
“The ‘buy the dip’ mantra that has been in effect since 2008 may be over, here’s why: 1) The US stock market’s market capitalization/GDP ratio has reached its highest level in nearly a century; 2) The 180-day volatility of the S&P 500 and NDX is at its lowest level in about eight years; 3) The crypto bubble is bursting, Trump enthusiasm is peaking and becoming contagious; 4) Gold and silver are gaining alpha at a pace not seen nearly half a century ago.”
McGlone stated that the cryptocurrency bubble has burst and volatility has increased, adding that this volatility could spread to the stock market. The analyst also noted that Bitcoin, a risk asset highly dependent on market sentiment, could experience a sharper decline if it fails to move steadily with the stock markets.
Consequently, assuming US stock markets have truly peaked, the analyst predicts that the Bitcoin price could fall to around $10,000.
“Part of my baseline scenario for Bitcoin to return to $10,000 is for the US stock market to peak.”
*This is not investment advice.
