Bitcoin could be on the verge of a major correction, according to Bloomberg’s senior commodity strategist Mike McGlone. He has doubled his prediction that the leading cryptocurrency could fall sharply to $10,000.
According to McGlone, Bitcoin maintains its elevated market price because of the U.S. stock market’s exceptional performance. The cryptocurrency depends on record-breaking equity rallies to maintain its inflated value because it lacks independent market strength.
In a conversation with Barnett Energy, McGlone dismissed the notion that Bitcoin serves as a secure investment option. Bitcoin maintains trading characteristics of higher volatility when compared to gold and the S&P 500.
Also Read: $6M in Tokens Up for Grabs as Spark Launches ‘RED Season’ Rewards
The strategist reminded observers that he previously predicted Bitcoin would hit six figures by 2025, a target already reached with its all-time high of $108,786. According to McGlone, Bitcoin will establish a mean reversion pattern that may pull its price to $10,000.
He described this potential drop as a normal market correction, especially following the launch of spot Bitcoin ETFs. McGlone noted that such product rollouts often coincide with price peaks and investor euphoria.
Gold’s Momentum Seen as a Warning Signal for Bitcoin Investors
As Bitcoin faces downward pressure, gold has continued its upward momentum, hitting a new all-time high of $3,171 earlier today. McGlone pointed to this trend as a key signal that risk appetite may shift.
According to McGlone, gold’s dominance over major assets functions as an indicator of market speculation. The transfer of investment capital from digital volatile currencies to traditional stable investments shows a systematic market evolution.
Peter Schiff warns through his criticism of Bitcoin that the cryptocurrency could drop to 90 percent of its current value. McGlone’s bearish projection about Bitcoin prices matches Schiff’s outlook, as both experts expect the market value to return to $10,000.
Traditional asset performance alongside Bitcoin volatility concerns have sparked a debate about cryptocurrency price stability during the upcoming period.
Conclusion
With prominent analysts predicting a significant drop in Bitcoin’s value, investor caution is growing. As gold hits fresh highs and market dynamics shift, Bitcoin may face increased downward pressure in the coming months.
Also Read: Whale Activity in Toncoin Spikes Over 111% as Market Rebounds
