McGlone Warns Bitcoin Could Drop to $10,000 Amid S&P 500 Decline

Bloomberg analyst Mike McGlone has warned that Bitcoin could drop to $10,000 if the S&P 500 index falls by 20%. This prediction is based on historical correlations between the two assets and current market conditions.

McGlone highlighted three key factors contributing to his bearish forecast: the price rebound stalling at $76,746, a 70 basis point hike in Fed funds rates draining liquidity from speculative markets, and the S&P 500 moving critically far above its 200-week moving average.

The analyst emphasized that Bitcoin has underperformed as an asset over the past five years, matching the return on the S&P 500 but with nearly three times the volatility. He also noted that Bitcoin's value is tied to the trajectory of tech stocks and bears the burden of increased beta for millions of competing cryptocurrencies.

Adam Back, CEO of Blockstream, disagrees with McGlone's forecast, suggesting that Bitcoin is unlikely to sustainably fall below $65,000. The 200-day moving average price has risen to this level, historically considered a mathematical lower bound.