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It wouldn’t be surprising if Bitcoin’s price plunged to $10,000 following its meteoric rise amid the pandemic-era crypto boom, Bloomberg Intelligence Senior Commodities Strategist Mike McGlone reiterated on Sunday.
In a LinkedIn post, McGlone posited that “the biggest money pump in history may be unwinding,” with the digital asset poised to fall to what would be its lowest price since July 2020—a milestone that Bitcoin crossed approximately 69 months ago.
With Bitcoin changing hands around $70,000 on Monday, the digital asset’s price would need to plummet more than 85% to reach $10,000, according to CoinGecko. If Bitcoin were valued at that price today, its market capitalization would be close to $200 billion.
McGlone acknowledged that Bitcoin could prove him wrong if it manages to stay above $75,000, describing that level as a key threshold. Last month, the digital asset jumped to $75,600 amid heightened geopolitical tensions before retreating.
In his post, McGlone noted that $10,000 is Bitcoin’s “most traded price since 2017,” when regulated futures were introduced by Cboe and CME Group in the U.S. He noted that myriad cryptocurrencies, “with only a few tracking tangible value,” have debuted since then.
Although McGlone’s prediction is likely to rankle some investors with exposure to Bitcoin, the strategist indicated on Monday that his warning comes from a place of care. Meanwhile, some analysts believe that Bitcoin’s price has already bottomed amid its latest rout.
“I see a hurricane coming in, and it’s my duty to warn you,” McGlone said during The Wolf Of All Streets Podcast with Scott Melker on Monday. “Don’t reject the bear, just accept it.”
Since Bitcoin hit an all-time high above $126,000 in October, the digital asset has plunged 45%. Last month, McGlone said in an interview with YouTuber EllioTrades that the crypto market is undergoing a “purging” of market excesses following a period of massive liquidity.
McGlone argued that Bitcoin is suffering from the proliferation of other cryptocurrencies, including meme coins like Dogecoin and Shiba Inu that “should be purged down to zero.”
Many analysts believe that Bitcoin’s market structure changed with the debut of exchange-traded funds tracking the digital asset’s spot price in 2024, which could reduce the severity of drawdowns through a broader mix of investors, including institutions.
Still, McGlone argued that Bitcoin’s financialization through ETFs and options means “Bitcoin is no longer exciting.” Meanwhile, he said that risk assets have become increasingly correlated, likely making the digital asset vulnerable to volatility in stocks.
On LinkedIn, McGlone said that cryptocurrencies pegged to the U.S. dollar have emerged as the “most enduring trend” in the digital assets space. He wagered that Tether’s USDT, currently worth $184 billion, will eventually become the dominant digital asset by market cap.
As the third-largest digital asset, the leading stablecoin still has a long way to go: Bitcoin’s market cap stood at $1.4 trillion on Monday, while Ethereum had a total value of $261 billion.
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