Bitcoin could fall to $10,000, Bloomberg strategist warns
Senior Bloomberg strategist Mike McGlone has stated that bitcoin could plummet to $10,000 if the US stock market enters a full bear market cycle. This forecast is significant for investors as it implies potential large swings in the crypto market if traditional financial markets weaken further.
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McGlone points out that the US stock market is currently overheated, with market capitalization to GDP at a century high, while the volatility of the S&P 500 remains abnormally low. He also highlights that the cryptocurrency bubble is deflating, with gold and silver attracting more investment capital.
If the S&P 500 reverses downward, bitcoin could initially retreat to around $56,000, with a base negative scenario projecting a drop to $10,000. The key condition for this decline is a recession and the US stock market reaching its peak.
