Market News

Bitcoin Under Fire: Bloomberg's Mike McGlone Predicts a Possible Plunge to $10,000

Mike McGlone, a senior commodities strategist at Bloomberg Intelligence, has issued a stark warning regarding Bitcoin's future.

During a recent interview, McGlone suggested that Bitcoin could experience a dramatic drop of up to 90%, potentially returning to the five-digit price level last seen in 2020.

He stated, "I think it loses a zero now. Go back to $10,000," acknowledging that while this is significant for current investors, it reflects Bitcoin's volatile history.

McGlone attributes his bearish outlook to several factors, including governmental adoption of cryptocurrencies and the exponential growth of digital asset offerings.

He pointed out that the expansion of the crypto dollar market, which has soared from $2 billion to almost $300 billion, complicates Bitcoin's unique value proposition.

Despite having previously forecast a rise from $10,000 to six figures, McGlone now believes the surge in alternative cryptocurrencies undermines Bitcoin’s scarcity narrative.

He noted that the market is trending towards an oversaturation, with CoinMarketCap listing nearly 21 million different cryptocurrencies compared to Bitcoin's capped supply of 21 million coins.

McGlone maintains that Bitcoin is ultimately a commodity, which he describes as "wonderful to trade" but not ideal for long-term investment.

His analysis highlights a trend where asset prices retract after significant increases, suggesting Bitcoin may be entering a prolonged downturn.

As of now, Bitcoin is trading at $111,596, raising questions about its sustainability at current levels amidst these evolving market dynamics.