TL;DR
Bitcoin’s next narrative test may not be a halving or an ETF headline, but a hard reset in risk appetite. Bloomberg Intelligence strategist Mike McGlone warned that the crypto market “bubble is imploding” and that Bitcoin could fall another 85% to $10,000. His thesis is that the market is shifting from buy-the-dip reflexes to a harsher cycle of price discovery. He argued the long-running mantra since 2008 may be fading as macro conditions evolve and confidence in political crypto boosterism cools. Bitcoin is already down nearly 30% over the past month. That sets baseline.
McGlone’s rationale is a bundle of macro crosscurrents that, in his view, are eroding crypto’s narrative premium. He says multiple signals point to a bubble deflating, not a routine correction. He cited surging stock markets paired with low volatility, plus the industry losing faith in US President Donald Trump’s crypto boosterism. He also noted gold and silver traders are taking profits at a velocity last matched about half a century ago. Meanwhile, investors have dumped $678 million of Bitcoin ETFs in February, extending a $6 billion selloff since November. Recent downturn erased $2 trillion.
Not everyone is buying the $10,000 roadmap, and the bullish camp is pointing to policy and institutional positioning. The counter-narrative is that regulation and balance-sheet demand can stabilize confidence even in a drawdown. On Thursday, US Treasury Secretary Scott Bessent said crypto legislation such as the Clarity Act could shore up investor confidence and lift prices. Institutions including BlackRock and Goldman Sachs have continued to increase exposure to Bitcoin and alternative cryptocurrencies like Ethereum. In the latest market read, Bitcoin traded at $68,717, down 2.2% in 24 hours, while Ethereum was $1,971, down 4.4%.
The warning is also framed as a macro linkage story, because Bitcoin’s price movements closely follow technology stocks. McGlone’s call leans on the idea that an “AI scare trade” is turning equity volatility into crypto volatility. Technology shares have been hit by fears of disruption from artificial intelligence, and BlackRock’s tech ETF is down 23% year-to-date. On Feb. 1, Microsoft saw its value drop by $357 billion in the second-largest single-session selloff in history. Yardeni Research’s Ed Yardeni said innovations are disruptive and that technical obsolescence is moving at “warp speed,” spooking investors broadly.
Also read: Bitcoin Accumulator Addresses Buy 372,000 BTC Per Month During -50% Drawdown — 37x Higher Than September 2024
