McGlone Warns Bitcoin Price Could Crash to $10K, Gold May Rally
Bloomberg Intelligence strategist Mike McGlone warns that the recent Bitcoin price surge to $100,000 marks a market peak. He predicts Bitcoin price could plunge 90% to $10,000 amid cooling sentiment. McGlone notes Bitcoin’s record correlation with the S&P 500 makes it a risk-on asset tied to U.S. stocks. He also flags the proliferation of over 21 million cryptocurrencies as a broader crypto market risk. Volatility indicators, including a VIX spike after August lows, support his bearish outlook. In contrast, McGlone forecasts gold could rally toward $4,000 as equities decline. He advises traders to brace for a correction phase and monitor safe-haven assets like gold.
Bearish
McGlone’s warning that Bitcoin price could collapse to $10,000 highlights growing bearish sentiment. In the short term, traders may reduce long positions and seek safe-haven assets like gold, driving further selling pressure. His emphasis on high correlation with the S&P 500 suggests Bitcoin will follow equity weakness, reinforcing risk-off flows. Over the longer term, crowded crypto markets and record correlations may limit upside potential, keeping Bitcoin under pressure until broader market confidence returns.