Bitcoin continues to trade near the $70,000 level as analysts debate the cryptocurrency’s long-term direction. Bloomberg Intelligence senior commodity strategist Mike McGlone reiterated his view that Bitcoin could still drop below $10,000. However, many market observers argue that such a collapse would require an extreme global economic shock.
In a recent interview with EllioTrades, McGlone said that the crypto market’s bearish phase may not be over. He said that Bitcoin is still susceptible to a decline if global risk assets are severely repriced, especially if there is a decline in global liquidity and investors’ appetite for riskier assets.
McGlone’s forecast was challenged by many market analysts, who argued that while Bitcoin may decline further, a drop towards $10,000 is impossible. Analysts argued that for Bitcoin’s price to drop as low as $10,000, a severe crisis would need to affect global financial systems and cryptocurrencies simultaneously.
Mati Greenspan stated that extreme forecasts often result from analysts overinterpreting short-term macroeconomic developments. He said that due to Bitcoin’s massive global trading volume, a drop to $10,000 is impossible unless there is a severe crisis in global liquidity and a geopolitical crisis.
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As of the time of writing, the price of the cryptocurrency is trading around the $69,555, with a market capitalization of around $1.39 trillion, as per TradingView. Its market volume is close to the $68.9 billion mark. Its market dominance stands at around 58.83%, indicating that the cryptocurrency still dominates the digital asset market.
The recent price movements of the cryptocurrency were seen around the $69,000 and $71,000 marks. The price increase was also seen as the price of oil fell by almost $3 per barrel within minutes. Other digital assets, including Ethereum, Solana, and XRP, also registered minor gains within the same timeframe.
McGlone’s bearish sentiment on the cryptocurrency market appears to be based on various macroeconomic factors. He believes that the increased involvement of financial institutions within the cryptocurrency market has led to its price being more directly related to the prices of speculative assets.
However, other experts believe that the price of the cryptocurrency could dip further. Jason Fernandes believes that the price of the cryptocurrency will have to dip to the $28,000 mark due to factors that will cause significant liquidity crises. However, the price dip will not be due to the natural economic slowdown.
Similarly, Jonatan Randin described the $10,000 forecast as highly improbable. He believes that the price of the cryptocurrency will dip gradually within the coming days. There could be an accumulation of cryptocurrency within the price range of $30,000 and $40,000 if the macroeconomic factors continue to influence the risk market.
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