McGlone Sees $10K Bitcoin if S&P Corrects 20%

Bloomberg Intelligence's senior commodity strategist Mike McGlone has warned that Bitcoin could plummet to $10,000 if stocks experience a sharp correction. According to McGlone, a 20% drop in the S&P 500 followed by a period of stabilization at that level could send Bitcoin tumbling.

McGlone cited resistance near $80,000 as one factor contributing to the risk of a decline in Bitcoin. Additionally, expectations for interest-rate increases and elevated U.S. stock valuations are also weighing on the digital asset.

BTC has recently faced resistance around $80,000 during its rebound, while federal funds futures one year out are pricing in about 70 basis points of rate hikes. The S&P 500 also remains well above its 200-week moving average.