Bitcoin Price Crash Is Far from Over – The Path to $10K BTC Begins, Says Bloomberg Analyst

Bitcoin has been under pressure, and Bloomberg’s senior macro strategist, Mike McGlone, thinks the worst hasn’t even arrived yet. According to his latest forecast, the price of BTC will drop further down below $10,000, one of the most pessimistic forecasts among traders now.

But for him, it’s not just about technical analysis. The main reason for his negative outlook stems from an easy money environment of recent years which brought out incredible rallies in the world of both cryptocurrencies and equities, and now all these excesses should come to an end. 

Risk assets can go much lower in case high interest rates and scarcity of liquidity remain the same. And one of the major reasons for his forecast is the surge of Tether. At some point, USDT overtook Ethereum in terms of market capitalization, becoming the second largest cryptocurrency.

Bitcoin Holds Firm as Ethereum Reclaims the No. 2 Spot

The consensus in the market is yet to be fully in line with that opinion. Following McGlone’s remarks, Ethereum has gained about 3.2% in value and has recaptured its status as the second most valuable cryptocurrency in terms of market capitalization. The recovery shows that there remains willingness to invest after a period of significant sell-offs, particularly in proven coins.

Another point to note is that despite the general downtrend within the crypto sector, the BTC price continues to stay above the $60,000 level. While the situation remains bearish, it proves that buyers can still step in at lower prices.

From about $60,900 down to $10,000 is an 80% or more drop in value for the BTC price, which will result in massive losses for the coin, amounting to hundreds of billions of dollars. Such a plunge will be one of the largest in the history of Bitcoin trading and will inevitably lead to panic in the crypto world.

However, such a dramatic drop is only theoretical and will be impossible without certain conditions being met. These include continued selling pressure on spot ETFs from institutional investors, worse macroeconomic environment, and lack of faith in digital assets overall.

Bitcoin has experienced deep bear markets before, and that range would fit historical cycles without completely destroying the industry’s structure. A drop to those levels would still be painful, but crypto would continue operating as a major asset class. A fall to $10,000 would imply a level of capitulation that would leave the entire market struggling to recover.

Read Also: Claude AI Predicts the XRP Price if Bitcoin Crashes to $40K

The Crypto Market Is Still Under Pressure

Investors continue to maintain their defensive stance, based on the latest figures, with the BTC price now at $60,942, which represents a decline of about 1.1%. The market cap stands at around $1.21 trillion, while most other cryptocurrencies are also falling in value.

We had a look at the broader market, and the selling appears driven more by macro concerns than project-specific problems. Many traders are watching interest rates, liquidity conditions, and traditional markets just as closely as crypto news.

Another example that caught the public’s interest includes a Bitcoin wallet with 47.26 BTC mined in 2011 and which started making moves again after 15 years. The wallet is involved in a court case regarding the ownership of 3.7 million “dormant” Bitcoin with a market value of almost $293.5 billion. 

The sale of 49,858 BTC by Germany at $57,900 per token in 2024 looks different now as well. At the time, many criticized the sale as poorly timed. With Bitcoin trading only about 7% above that level, the government’s exit now looks far less controversial.

Where Could the BTC Price Go Next?

McGlone’s warning deserves attention because macroeconomic conditions continue to influence every financial market. However, for the BTC price to drop to $10,000 indicates a situation in which there is a total lack of confidence on the part of investors.

At the present time, however, the Bitcoin price is maintaining its stance at the $60,000 mark, the amount of Bitcoin held by spot Bitcoin ETFs is huge, and cryptocurrencies remain strongly associated with conventional finance.

The real issue could actually be whether or not buyers are prepared to protect the BTC price in the $40,000 to $50,000 range should things get worse in the coming months.

FAQs

What factors could trigger a Bitcoin rally

Lower interest rates, renewed ETF inflows, improving macroeconomic conditions, and stronger investor sentiment could all contribute to a recovery in the BTC price.

What is whale accumulation in Bitcoin

Whale accumulation refers to large investors or wallets buying and holding significant amounts of Bitcoin. Historically, periods of whale buying during market declines have often preceded major recoveries.