Bloomberg Analyst Predicts Bitcoin Price Drop to $10,000
Bloomberg Senior Commodity Strategist Mike McGlone issued a stark warning about the cryptocurrency market, predicting a significant price correction.
Bitcoin Price Could Plunge to $10,000
In an exclusive interview with Cointelegraph, McGlone highlighted deepening market sell-offs, exacerbated by ongoing global economic uncertainties. He forecasts Bitcoin (BTC) could fall to $10,000, attributing the potential decline to excessive speculation and overvaluation within the digital asset space.
McGlone's concerns extend beyond Bitcoin. He stated, "Look at Dogecoin — it still has a $20 billion market cap. It should go to zero. The whole space needs purging, just like the dot-com bubble did."
Market Reset and the 'Digital Gold' Narrative
McGlone believes Bitcoin's current price is vulnerable to significant downward pressure as part of a broader market reset. He cautions that Bitcoin's "digital gold" narrative is undergoing a critical stress test, stating, "Anybody who bought ETFs is learning the hard way. They did not buy digital gold. They bought more of a value of leveraged beta. That's a fact."
While acknowledging potential trading opportunities for astute investors, McGlone anticipates a prolonged recovery process, unlike the rapid "V-shaped" rebound seen after the COVID-19 market crash. He points to the US stock market's disproportionate size relative to the US economy as a factor contributing to the need for a market reset.
He explains, "Back then, the US stock market was around 1.5 to GDP. We popped up to 2.2 or so to GDP. Markets just got too high."
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For more insights into McGlone's analysis, watch the full Cointelegraph interview here.