Analyst warns Bitcoin could crash to $10K as macro stress and risk-asset unwinding signal a bursting crypto bubble if equities slide further.
Analyst warns Bitcoin could crash to $10K as macro stress and risk-asset unwinding signal a bursting crypto bubble if equities slide further.Bloomberg Intelligence senior commodity strategist Mike McGlone has published a warning suggesting Bitcoin could revert toward $10,000 as broader financial market turbulence spreads.
His remarks framed the current market slide as part of a broader risk-asset unwind tied to stocks, volatility cycles, and macro liquidity.his outlook to several macro signals, including U.S. stock market capitalization relative to GDP at century highs, unusually low 180-day volatility in the S&P 500 and Nasdaq 100, and a rally in gold and silver that he said is occurring at speeds last seen about fifty years ago. He characterizes the current environment as one where “the crypto bubble is imploding” and framed 2026 as potentially reminiscent of 2008 in terms of market turbulence. The analyst shared a chart that compared Bitcoin divided by ten with the S&P 500, which showed both hovering below 7,000 on February 13. He added that if equities revert toward 5,600 on the S&P, BTC could mirror that move toward about $56,000, then potentially much lower if stocks peak. “It seems unlikely that volatile and beta-dependent Bitcoin can stay above this threshold if beta doesn’t,” McGlone wrote, which serves as the centerpiece of his bearish outlook. “Initial normal reversion is toward 5,600 SPX , then what? Part of my base case for Bitcoin to revert toward $10,000 is a US stock market peak. 7,000 S&P 500, 50,000 Dow can’t be tops — or else.” Recent performance data shows why such warnings are gaining traction. Bitcoin is down about 2% in 24 hours and nearly 28% over the past month, with six-month losses near 39%. Trading activity remains elevated, with roughly $44 billion in futures volume and open interest near the same level, suggesting heavy derivatives positioning during the decline.that about 43% of Bitcoin’s circulating supply is currently at a loss, while the Fear and Greed Index dropped to 8, a level seen during prior crisis periods such as the FTX collapse.Bitcoin Shorts Hit August 2024 Levels as Funding Rates Sink Deeply NegativeThese wallets meet strict criteria, such as no outflows and multi-year activity, which analysts say reduces distortion and suggests long-term positioning rather than short-term trading.it completed converting its $1 billion SAFU insurance reserve entirely into Bitcoin and is now holding about 15,000 BTC. Days earlier, a filing showed Goldman Sachs still hadon X that Bitcoin has recently moved alongside software stocks under pressure from AI disruption, suggesting tech investors, many of whom hold BTC, may be selling crypto to raise cash.Wayne is a dynamic part-time trader with an impressive eye for detail. His passion for understanding financial systems has led to an intriguing interest in blockchain technology, and he enjoys exploring and writing about cryptocurrencies. Possessing a keen intellect and diligent work ethic, he stays up-to-date on the latest industry trends, regularly sharing his insights in articles and professional presentations.
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