Bitcoin Rally May Be Temporary, Strategist Warns

Bloomberg Intelligence's leading macro strategist, Mike McGlone, has issued a warning that Bitcoin's current stabilization around $60,000 may be false. He believes that the market is on the verge of a broad return to historical averages and that large investors should prepare for a potential crash.

The main argument against the durability of the current bottom is the unprecedented liquidity shortage in the crypto market, fueled by competition from traditional finance. The S&P 500 Total Return Index has pushed to new all-time highs, making it unattractive for institutional capital to hold positions in volatile Bitcoin.

McGlone notes that similar rules of supply-and-demand economics may continue to pressure Bitcoin since it first closed above $100,000 in January 2025. He points out that a top prerequisite for typical post-inflation deflation is yet to occur: a 20% drawdown in the US stock market.

Historical economic cycles and Bloomberg Intelligence's calculations suggest that the real, fundamentally justified bottom, where large investors should begin building positions, is at $10,000. With Treasury yields still around 5%, September's rally looks like a temporary reprieve.