Bitcoin Risks Dropping to $10,000, Warns Bloomberg Strategist

Bitcoin remained relatively stable over the weekend after a volatile week in which it surged to an intraday high of $85,220 on Friday before experiencing modest fluctuations.

Notably, recent market movements and mixed fundamentals have divided analysts. While some remain optimistic about Bitcoins potential to recover, others are sounding the alarm, with one prominent strategist warning of a potential collapse to $10,000.

Mike McGlone, senior commodity strategist at Bloomberg Intelligence, warned about Bitcoins downside risks, citing macroeconomic factors and market trends that could lead to a severe decline. In a tweet on Friday, McGlone questioned whether Bitcoin could revisit $10,000, drawing attention to the rising price of gold and potential market headwinds.

Gold is up about the same amount in 2025 to March 13about 15%that Bitcoin is down. But with Bitcoin at about $80,000, what stops those trajectories? he wrote.

McGlone also pointed to a potential 6% decline in the S&P 500 as a key risk factor, adding that the current market cycle could mirror the speculative bubble seen 25 years ago.

In an interview with Yahoo Finance, McGlone emphasized the appeal of traditional safe-haven assets amid economic uncertainty. Treasuries and gold are still the primary safe-haven plays, he explained, highlighting golds recent rally to $3,000 an ounce as evidence of growing investor caution. He also suggested that a broader market downturn could accelerate Bitcoins decline, stating, The riskiest assets are cryptos I can point out that Bitcoins peak looks to be around $100,000, which is why gold continues to go up.

McGlone is not alone in predicting further downside for Bitcoin. Earlier this week, Arthur Hayes, former CEO of BitMEX, suggested that Bitcoin could drop to $70,000 before staging a recovery. According to Hayes, a 36% correction from Bitcoins peak of $110,000 would be normal for a bull market. He argued that Bitcoins next major rally would likely depend on worsening macroeconomic conditions and potential monetary policy shifts from major central banks, including the U.S. Federal Reserve and the European Central Bank.

Elsewhere, Markus Thielen, head of research at 10x Research, suggested that Bitcoin may enter a prolonged consolidation phase after reaching its recent all-time high. He noted that Bitcoins current technical structure resembles a high flag pattern, a formation that typically signals bullish continuation. However, he warned that signs of weakness within the pattern indicate market uncertainty, making it unclear whether Bitcoin will sustain its uptrend or face further corrections.

However, not all analysts foresee a steep drop. On-chain data from CryptoQuant suggests that Bitcoin is nearing an oversold zone, with its MVRV ratio falling to 1.8, close to the 2024 correction low of 1.71. According to the firm, if Bitcoin fell to $70,000, it could present a favorable entry point for investors and spark a rebound.

At press time, BTC was trading at $84,418 reflecting a 0.77% surge in the past 24 hours.

Text source: ZyCrypto

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