Bloomberg Intelligence Senior Commodities Strategist Mike McGlone has reiterated a stark warning, predicting Bitcoin's price could plummet to $10,000 this year. In a LinkedIn post and during an appearance on The Wolf Of All Streets Podcast, McGlone described the current market environment as "a hurricane coming in," arguing that "the biggest money pump in history may be unwinding."
A drop to $10,000 would represent a decline of more than 85% from Bitcoin's current trading level around $70,000, pushing its market capitalization to approximately $200 billion. This price point would mark Bitcoin's lowest valuation since July 2020, a level last seen roughly 69 months ago. McGlone identified $75,000 as a critical threshold, stating Bitcoin could prove him wrong if it manages to stay above that level. Bitcoin briefly touched $75,600 last month amid geopolitical tensions before retreating.
The analyst posits that Bitcoin is suffering from the negative effects of market proliferation. He argues that the introduction of "millions of cryptocurrencies," including meme coins like Dogecoin and Shiba Inu that he believes "should be purged down to zero," has divided liquidity and investor attention. Furthermore, McGlone contends that Bitcoin's financialization through Exchange-Traded Funds (ETFs) and options means "Bitcoin is no longer exciting" and that risk assets have become increasingly correlated, making Bitcoin vulnerable to stock market volatility.
In a notable side prediction, McGlone wagered that Tether's USDT stablecoin, with a current market cap of $184 billion, will eventually surpass both Bitcoin and Ethereum to become the dominant digital asset by market capitalization. He views dollar-pegged cryptocurrencies as the "most enduring trend" in the digital assets space. For context, Bitcoin's market cap stood at $1.4 trillion and Ethereum's at $261 billion as of Monday.
This bearish outlook contrasts with the perspective of other market analysts. Many highlight factors that may cushion a severe downturn, including the structural change brought by the debut of spot Bitcoin ETFs in 2024, which introduced a broader mix of institutional investors. These analysts point to Bitcoin's fixed supply, ongoing institutional demand, and its role as a non-sovereign asset as key strengths supporting a constructive long-term outlook despite short-term volatility risks.
