Analyst Mike McGlone from Bloomberg forecasts that cryptocurrencies may perform poorly in the market in 2025, facing pressures compared to other assets.
Cryptocurrency Underperformance
McGlone noted that the Bloomberg Galaxy Crypto Index (BGCI) has risen by 7% year-to-date, matching the S&P 500. However, despite this increase, the situation in the cryptocurrency market raises concerns. On a risk-adjusted basis, cryptocurrencies are significantly underperforming the S&P 500, offering similar returns with four times the volatility. This is viewed as a red flag.
Bitcoin Price Prediction
McGlone predicts that Bitcoin could fall to $10,000, expecting a severe correction. This forecast comes despite the cryptocurrency reaching its all-time high of $122,838 in July. Despite facing criticism, McGlone remains steadfast in his bearish view on crypto.
Stock Market Expectations
The analyst also suggested that as long as the stock market continues to rise, cryptocurrencies might be fine. However, he predicts that next year the U.S. stock market will experience significant declines. "I expect 2025 to be a down year for the U.S. stock market, marking the beginning of the third 50% drawdown since 2000," McGlone stated.
Thus, McGlone's predictions highlight the instability of the cryptocurrency market, particularly foreseeing a challenging future for Bitcoin and other cryptocurrencies amid potential negative changes in the stock market.
