Bitcoin Risks $10,000 Crash as Speculative Bubble Deflates

Bloomberg Intelligence Senior Commodity Strategist Mike McGlone has updated his medium-term Bitcoin forecast, warning investors about the risk of a major price correction.

While the U.S. stock market, represented by the Nasdaq and S&P 500, is reaching new all-time highs, Bitcoin continues to lag behind equities. According to McGlone, Bitcoin's inability to consolidate above the $69,000 level while stocks are rising is a key sign that the speculative bubble is deflating.

McGlone compares Bitcoin's multiyear rise to a 'Faustian bargain', the industry achieved success and attracted institutional capital, but it is now paying for this by becoming completely dependent on external stimulus.

The strategist notes that every major BTC rally received temporary 'artificial' support. In 2021, the largest injection of cheap liquidity into the global economy in history pushed the price toward peak levels. In early 2024, the launch of spot ETFs in the United States became the trigger. Then, in late 2024, a dramatic shift in regulatory rhetoric and expectations of major political concessions for the industry temporarily pushed the price above $100,000.