Bitcoin Faces $10,000 Drop Risk Amid Strong Correlation with S&P 500
Bloomberg strategist Mike McGlone has warned that Bitcoin's strong correlation with the S&P 500 and expected Federal Reserve interest rate hikes could trigger a significant sell-off. According to McGlone, Bitcoin has lost its status as a 'digital gold' safe haven, behaving more like a stock with high volatility.
The current macroeconomic signals are negative for Bitcoin, which is trading near $76,700 after a slight 0.8% drop. Analysts highlight the importance of a weekly close above $78,300 to prevent a repeat of a bearish price pattern seen in May 2026.
McGlone's prediction is that Bitcoin could fall to around $10,000 if the stock market corrects by 20%. The Federal Reserve's upcoming decision on September 16 may also impact the cryptocurrency. Goldman Sachs has revised its monetary outlook, now forecasting a 25 basis point Federal Reserve rate hike in September following stronger-than-expected core inflation data for August.
This shift reflects a growing consensus among major banks and has implications for Bitcoin's price below $80,000. The current market environment is pressuring Bitcoin, with key resistance at $76,746.