McGlone Warns Bitcoin at Risk of Plunging Back to $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. The analyst notes that Bitcoin's inability to consolidate above the $69,000 level while stock indices are rising is a key sign that the speculative bubble is deflating.

According to McGlone, every major BTC rally has received temporary 'artificial' support. In 2021, the largest injection of cheap liquidity into the global economy in history pushed the price toward peak levels. Similarly, the long-awaited launch of spot ETFs in the United States became the trigger for a price surge in early 2024.

However, McGlone argues that capital inflows into ETFs have now dried up, while the regulatory hype has subsided, leaving the market alone with cyclical macroeconomic forces. He also believes that the explosive growth in the number of low-quality altcoins only emphasizes the unique status of Bitcoin as a proven and scarce digital asset with a clear regulatory history.