Mike McGlone, Senior Strategist at Bloomberg Intelligence, recently warned of a potential 90% Bitcoin price crash, possibly reaching $10,000 by 2025.
Macroeconomic Factors Influencing Bitcoin's Decline
Mike McGlone highlights that the potential decline in Bitcoin is linked to macroeconomic pressures. He emphasizes a shift in the perception of Bitcoin from 'digital gold' to a 'risk-on asset', driven by its correlation with the S&P 500 and actions of the Federal Reserve.
> 'Bitcoin could plummet by 90% to $10,000 in 2025, driven by systemic market corrections and macroeconomic shifts.' — Mike McGlone, Senior Commodity Strategist, Bloomberg Intelligence
Financial Community's Response to the Prediction
McGlone’s warning has sparked discussions in the financial community, yet there is no corroborating evidence from Bitcoin developers or major cryptocurrency exchange executives indicating imminent systemic risk. Despite initial concerns, on-chain data suggests continued accumulation by whale wallets, reflecting mixed investor sentiment.
Historical Downturns and Possible Scenarios
Bitcoin has experienced significant downturns in the past, such as the 2018 Crypto Winter, but none of these scenarios match the extreme loss McGlone forecasts. Experts highlight that while past data reveal vulnerabilities, the current market infrastructure and institutional participation suggest a less severe downturn than anticipated.
Predictions of a significant drop in Bitcoin's price raise concerns about market stability. However, current data and community responses indicate that the market remains resilient to such warnings.
