Bloomberg Intelligence's Senior Strategist, Mike McGlone, sends chills through the cryptocurrency market with an ultrabearish forecast: Bitcoin (BTC) might dip to the $10,000 range. As investors await the next Bull run, this technical analysis hints at a significant risk of major capitulation akin to the dot-com bubble burst.
In a crypto market accustomed to volatility, price predictions are commonplace, but when Bloomberg Intelligence sounds the alarm, the financial sphere listens. Mike McGlone, a renowned macroeconomic analyst, recently shared a particularly pessimistic outlook for the queen of cryptocurrencies. According to him, Bitcoin is not immune to a severe correction that could bring it back to its psychological support level of $10,000.
This hypothesis rests on a cold analysis of previous market cycles and historical financial bubbles. McGlone estimates that BTC could potentially lose 90% of its value from its all-time high (ATH). Such a drop would not only mark the end of hopes for a short-term recovery but would plunge the market into a prolonged crypto winter, testing the resilience of even the most convinced HODLers.
To justify this frightening price target, the analyst draws a parallel with the bursting of the Internet bubble in the early 2000s. He compares Bitcoin’s current trajectory to that of Amazon during the dot-com crash. At the time, the e-commerce giant had suffered a spectacular drawdown, losing more than 90% of its valuation before beginning its slow climb back to the heights we know today.
If Bitcoin were to follow this model of complete retracement, the $10,000 threshold would become a logical technical target. This level would correspond to a total purge of speculative excess accumulated during the last bull rally. For traders, this would mean a brutal break of intermediate support levels (such as $26,000 or $15,000), potentially triggering cascading liquidations on derivatives markets.
This prediction comes in an already tense macroeconomic context, marked by rising interest rates and risk aversion (risk-off) from institutional investors. While some observers describe this analysis as FUD designed to frighten retail investors, others see it as a salutary warning. Additionally, a MicroStrategy bankruptcy or even quantum attacks are part of the ongoing debates.
A return to $10,000 would have devastating consequences for the ecosystem:
Although Bloomberg’s scenario is extreme, it serves as a reminder that the crypto market remains a high-risk asset. To invalidate this bearish thesis, Bitcoin must imperatively reconquer key levels and transform its former resistances into solid supports. As long as global liquidity remains constrained, the risk of a crash toward areas unexplored since 2020 remains a sword of Damocles hanging over the market. In any case, a return to $50,000 to $60,000 seems more likely than the opposite, but a break below $50,000 would be a bad sign.
Related articles:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
