Bloomberg analyst predicts Bitcoin could sink back to $10,000

Bloomberg's senior commodity strategist, Mike McGlone, warns of impending market turmoil in a recent Cointelegraph interview. He highlights deepening market sell-offs, exacerbated by ongoing trade tensions, and predicts a significant correction in crypto assets. McGlone forecasts Bitcoin could fall to $10,000, attributing this to excessive speculation and overvaluation within the cryptocurrency market.

He uses Dogecoin as an example, stating, "Look at Dogecoin — it still has a $20 billion market cap. It should go to zero. The whole space needs purging, just like the dot-com bubble did."

McGlone believes Bitcoin's price will face considerable downward pressure as broader markets reset. He cautions that Bitcoin's "digital gold" narrative is undergoing a significant test, noting, "Anybody who bought ETFs is learning the hard way. They did not buy digital gold. They bought more of a value of leveraged beta. That's a fact."

While acknowledging potential opportunities for astute traders, McGlone anticipates a prolonged recovery, unlike the swift V-shaped rebound following the COVID-19 market crash. He points to the US stock market's disproportionate size relative to the US economy, suggesting a correction is unavoidable. He explains, “Back then, the US stock market was around 1.5 to GDP. We popped up to 2.2 or so to GDP. Markets just got too high.”

For a comprehensive understanding of McGlone's analysis and predictions, view the full Cointelegraph interview .