Bitcoin (BTC), the leading cryptocurrency, experienced a significant downturn, plummeting nearly 30% from its all-time high of $109,000 to below $75,000 before recovering slightly to $79,000. This sharp decline has left investors on edge, prompting a warning from Bloomberg analyst Mike McGlone.

McGlone predicts an inevitable market reset in global markets, potentially pushing Bitcoin as low as $10,000. In a recent interview, he highlighted the ongoing steep declines and emphasized that Bitcoin's "digital gold" narrative is facing a crucial test. He attributed the market sell-off to factors like Donald Trump's tariff wars and excessive speculation within the cryptocurrency space, stating:

"The market sell-off is deepening due to Donald Trump's ongoing tariff wars and a sharp correction is taking place in cryptocurrency prices. The decline may deepen further amid excessive speculation and overvaluation in the crypto space. Look at Dogecoin for example; it still has a $20 billion market cap, but it should go to zero. The whole industry needs to be cleaned up, just like the dot-com bubble."

McGlone cautions against expecting a swift recovery, dismissing the possibility of a V-shaped rebound similar to the one following the COVID-19 crash. While advising investors to brace for a prolonged recovery process, he also suggests that the downturn presents long-term investment opportunities.

*This is not investment advice.