Bloomberg’s Mike McGlone Warns Bitcoin Could Crash to $10,000 as Tech Stocks Soar to Record Highs
Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, issued a stark warning today that Bitcoin faces a potential 10% correction, with the cryptocurrency vulnerable to a plunge toward $10,000. The caution comes as US tech benchmarks, including the Nasdaq and S&P 500, surge to all-time highs, leaving Bitcoin subdued and lagging behind the broader equity rally.
Key resistance and speculative bubble concerns
McGlone emphasized Bitcoin’s repeated failure to consolidate above the psychologically crucial $69,000 mark, even as equities continue advancing. He argues that this divergence signals a possible deflation of the speculative bubble in Bitcoin, which had previously paralleled the upward momentum in the US tech sector.
According to McGlone, the multiyear surge in Bitcoin’s price resembles a “Faustian bargain,” where the industry’s past growth and influx of institutional capital have come at the cost of increased reliance on external economic stimuli. He reported that every major rally in Bitcoin was supported by temporary, artificial factors, such as historic liquidity injections and favorable regulatory shifts.
McGlone describes Bitcoin’s rise as “a success story that owes much to institutional adoption and unprecedented liquidity, but is now exposed to the withdrawal of those very supports.”
In 2021, record-breaking liquidity supplied by central banks drove Bitcoin toward its previous peaks. More recently, in early 2024, the approval of spot Bitcoin ETFs in the US fueled renewed momentum. However, McGlone observes that ETF inflows have now waned and the benefits of regulatory excitement are fading.
ETF inflows drop, macro trends return
As of the latest data, Bitcoin is trading near $63,000. McGlone noted that the recent stall in ETF-related inflows, combined with diminished regulatory optimism, has left the market exposed to broader macroeconomic cycles rather than unique crypto catalysts.
Bloomberg’s analysis shows that Bitcoin’s movements closely follow trends in the traditional technology sector, particularly the ratio of the Nasdaq-100 Index compared to the broader S&P 500. With this spread now shifting downward, McGlone warned of potential mean reversion—a process where prices return to long-term historical averages.
| Bitcoin | $63,000 | Above $69,000 | $10,000 |
| Nasdaq-100 | All-time high | Current | Lower historical values |
McGlone stated that a return to the $10,000 range, last seen in 2019–2020, is possible if financial cycles continue to revert as in past macroeconomic environments.
Altcoin explosion and flight to quality
The strategist also highlighted the impact of a rapidly growing supply of alternative cryptocurrencies. He acknowledged that millions of new tokens may be generating additional downside pressure on Bitcoin as capital diversifies across the broader digital asset market.
However, McGlone recognized that some analysts view the altcoin surge as reinforcing Bitcoin’s unique position in the crypto ecosystem. As institutional investors seek safe and proven digital assets, he reported, Bitcoin’s relative scarcity and foundational regulatory standing continue to distinguish it from new, less established coins.
Despite market saturation with low-quality tokens, institutional capital increasingly gravitates to Bitcoin as the primary store of value among cryptocurrencies.
Bloomberg Intelligence, as the research arm of the global financial data company Bloomberg, regularly tracks institutional trends and market sentiment in the cryptocurrency space.
Mini dictionary: Bloomberg Intelligence, the research division of Bloomberg, provides data-driven insights and analytics for institutional investors in financial markets, including cryptocurrencies.
You can follow our news on X, Telegram, Facebook & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
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