McGlone Warns Bitcoin May Drop to $10,000 Amid S&P 500 Correction

Bloomberg Intelligence's chief macro strategist Mike McGlone has identified three bearish signals for Bitcoin. According to McGlone, one of the major concerns is that Bitcoin is no longer functioning as an independent 'digital gold' asset and is instead moving in tandem with the U.S. stock market.

McGlone cited a recent analysis by blockchain outlet U.Today, which reported on September 13 (local time) that the S&P 500 has risen to levels well above its 200-week moving average, increasing the likelihood of large-scale profit-taking by institutional investors.

The analyst also pointed out that Bitcoin's rebound was capped at $76,746, failing to break above the psychological resistance level of $80,000. Additionally, high valuations in the U.S. stock market and expectations for further Federal Reserve rate hikes are seen as risk factors.

McGlone forecasted that if the S&P 500 enters a correction and falls 20 percent, Bitcoin could drop to around $10,000, which he has presented as a long-term fundamental axis. This scenario is conditional based on a 20 percent S&P 500 correction.