Bitcoin Risks Plunge Back to $10,000 as External Stimulus Fades

Bloomberg Intelligence's 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.

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 long-awaited 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.

Bitcoin is currently trading at around $63,000. According to McGlone, capital inflows into ETFs have now dried up, while the regulatory hype has subsided, leaving the market alone with cyclical macroeconomic forces.