Bitcoin could see its price fall to $10,000 this year after experiencing significant growth during the pandemic-era crypto boom, Bloomberg Intelligence Senior Commodities Strategist Mike McGlone reiterated on Sunday. In a LinkedIn post, he suggested that ‘the biggest money pump in history may be unwinding,’ potentially leading Bitcoin back to its lowest level since July 2020—a status it achieved nearly six and a half years ago.
Currently trading at around $70,000, Bitcoin would need to drop by over 85% to reach the $10,000 mark, according to CoinGecko. If this were the case today, Bitcoin’s market capitalization would approximate $200 billion.
McGlone acknowledged that if Bitcoin maintains a value above $75,000, he could be proven wrong, identifying this as a crucial threshold. Last month, geopolitical tensions pushed Bitcoin’s price to $75,600 before it receded.
In his post, McGlone pointed out that $10,000 is the most frequently traded price for Bitcoin since 2017 when U.S.-based Cboe and CME Group introduced regulated futures. He noted the emergence of numerous cryptocurrencies without substantial tangible value since then.
Despite the potential distress this prediction might cause to investors holding Bitcoin, McGlone emphasized his concern in a Monday statement. Some analysts believe that Bitcoin’s price has already reached its lowest point following recent declines.
“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 peaked at over $126,000 in October, its value has decreased by 45%. Last month, in an interview with YouTuber EllioTrade, McGlone described the crypto market as undergoing a ‘purging’ of excesses after a period marked by substantial liquidity.
McGlone argued that Bitcoin is being impacted by the proliferation of other cryptocurrencies, including meme coins such as Dogecoin and Shiba Inu, which he believes should be reduced to zero.
Some analysts suggest that Bitcoin’s market dynamics changed in 2024 with the introduction of exchange-traded funds tracking its spot price. These ETFs could mitigate drawdown severity by attracting a more diverse investor base, including institutional players.
Nonetheless, McGlone contended that financialization through ETFs and options has diminished Bitcoin’s appeal, noting increased correlation between risk assets, which could heighten Bitcoin’s vulnerability to stock market volatility.
On LinkedIn, McGlone highlighted the emergence of U.S. dollar-pegged cryptocurrencies as a lasting trend in digital assets. He speculated that Tether’s USDT, currently valued at $184 billion, might eventually surpass other digital assets by market cap.
Though third-largest in terms of market capitalization, with Bitcoin standing at $1.4 trillion and Ethereum at $261 billion on Monday, the leading stablecoin still has a significant journey ahead.