McGlone Sees 'Faustian Bargain' as Bitcoin Prices Slide Towards $10,000
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 psychologically important $69,000 level while stock indices are rising is a key sign that the speculative bubble is deflating. He 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, including the largest injection of cheap liquidity into the global economy in history in 2021, the long-awaited launch of spot ETFs in the United States in early 2024, and a dramatic shift in regulatory rhetoric and expectations of major political concessions for the industry.