Bloomberg Strategist Predicts Bitcoin Plunge to $10,000 in Extreme Bear Market

Mike McGlone, senior commodity strategist at Bloomberg Intelligence, has issued a warning that Bitcoin could plummet to $10,000 in an extreme bear market. This scenario is based on his analysis of the cryptocurrency's high correlation with U.S. equities and its poor risk-adjusted returns over the past five years.

The S&P 500 falling by around 20% and remaining at that level for a sustained period could be enough to drive Bitcoin toward $10,000, McGlone said. This would require an additional decline of approximately 87% from its current price of around $77,300.

McGlone pointed out that while Bitcoin's returns have tracked the S&P 500 over the past five years, its volatility has been roughly three times higher. He argued that this makes Bitcoin a poor investment option from a risk-adjusted return standpoint.