Bloomberg Intelligence senior commodity strategist Mike McGlone warns that Bitcoin (CRYPTO: BTC) could plunge to $10,000 as AI-driven market risks, Federal Reserve tightening and an equity selloff trigger broader liquidation across risk assets.
Why Will Bitcoin Plunge to $10,000?
McGlone described Bitcoin’s recent recovery from $66,000 to nearly $87,000 as a “bear market bounce,” arguing that it remains highly dependent on stock market performance.
He noted that Bitcoin has declined 7% this year while the S&P 500 has gained 13%. Over two years, Bitcoin has risen 21%, compared with the S&P 500’s 47% advance.
In an interview with Bitcoin Magazine on Oct. 22, McGlone said he believes a sustained 20% correction in the S&P 500 could push Bitcoin toward $10,000, effectively erasing a zero from its price.
He also highlighted Bitcoin’s declining 50-week moving average near $76,000 as evidence of weakening momentum.
The strategist argued that spot Bitcoin ETF adoption and political support have failed to deliver sustained outperformance, leaving Bitcoin increasingly exposed to TradFi market risks.
Could AI and Fed Tightening Trigger a Market Crash?
McGlone identified elevated stock valuations, excessive leverage and tightening monetary policy as major threats to cryptocurrencies.
With markets pricing in three additional Federal Reserve rate hikes over the coming year, he warned investors against fighting the Fed.
He also highlighted China’s deflationary pressures, including cheaper AI technologies, electric vehicles and manufactured goods, as potential catalysts for global market disruption.
He warned that a sustained stock market decline could trigger recessionary conditions, potentially accelerating losses across Bitcoin, commodities and other speculative assets.
McGlone Favors Stablecoins, Treasuries Over BTC
Despite his bearish Bitcoin outlook, McGlone favors stablecoins, citing their real-world utility and growing role in tokenization.
He warned that speculative cryptocurrencies and meme coins weaken the sector’s investment appeal.
McGlone also sees opportunities in U.S. Treasuries amid elevated yields and potential rate cuts following an equity downturn.
He said Bitcoin must consistently outperform equities on a risk-adjusted basis before he turns bullish.
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