McGlone Sees Bitcoin Price Plunge to $10K If S&P 500 Pulls Back
Bitcoin's recent surge may be short-lived according to Mike McGlone, senior commodity strategist at Bloomberg Intelligence. The analyst believes that Bitcoin's price could drop significantly if the S&P 500 (SPX) pulls back.
McGlone points out that Bitcoin has been highly correlated with the SPX and other risk assets, which have seen a significant surge in value over the past year. However, he notes that this correlation also makes them vulnerable to a potential market downturn.
The analyst cites three key reasons why Bitcoin's price could drop: the $80K level as resistance, the pricing of 0.70% hikes by Fed funds futures for the next year, and the high valuation of the SPX compared to its 200-week moving average.
McGlone also warns that Bitcoin is not a safe-haven asset like gold, but rather a 'stock-puppet' due to its high correlation with the SPX. He predicts that if the SPX drops by 20%, Bitcoin's price could reach as low as $10K.