Bitcoin Price Predictions: Is a Crash to $10,000 Looming? Insights from Bloomberg Analyst

Bloomberg's Mike McGlone has issued a concerning forecast for Bitcoin (BTC), warning that the cryptocurrency may decline toward the $10,000 mark. This prediction presents a sharp contrast to other analysts who anticipate Bitcoin's floor to be closer to $38,000. McGlone's assertions come amid global market uncertainties and shifts in trading behavior.

Key Takeaways

Analyst Mike McGlone predicts Bitcoin could revisit the $10,000 mark, citing it as a historical trading reference.
Current Bitcoin trading is around $66,938, reflecting a 2.5% drop within a day.
Many analysts believe Bitcoin's lowest price this year will be above $38,000, indicating a divide in expectations.
Rising geopolitical tensions have contributed to market volatility and decreased investor confidence.
Data shows that large Bitcoin holders, known as whales, are shifting from buying to selling, impacting price movements.

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Why McGlone Considers a $10,000 Bitcoin Possible

In a recent update on social media platform X (formerly Twitter), Mike McGlone emphasized that the $10,000 price point is significant for Bitcoin. This level was a common trading figure before the major price surge in 2020-21 and has represented a critical trading range since Bitcoin futures began in 2017.

McGlone discusses his perspective as part of a "bursting crypto bubble" hypothesis, which aligns him with a smaller group of analysts. Most industry experts yo expect the lowest Bitcoin prices to fall no lower than $38,000 this year, revealing a significant difference in market predictions. If Bitcoin indeed dropped to $10,000, it would signify a staggering decline of about 92% from its all-time high of $126,000—a drop that would bring it below the previous bear market low of approximately $15,000.

This notion of reverting to $10,000 contradicts a pattern typically seen after Bitcoin’s Halving events, which historically have led to higher lows compared to earlier cycles. However, McGlone argues that recent significant changes in market dynamics could lead Bitcoin back to earlier price norms like the $10,000 mark.

Growing Concerns in the Market

On a broader scale, Bitcoin is experiencing limited movement within a specific range and struggling to find clear direction. Currently, Bitcoin is trading at approximately $66,938, reflecting a decrease of about 2.5% over the last 24 hours.

Analysts attribute some of this uncertainty to increasing geopolitical tensions. For instance, recent comments from President Trump regarding escalating military actions against Iran have raised concerns and dampened hopes for a quick resolution. This geopolitical backdrop has influenced risk assets and contributed to corrections in crypto markets.

"Trump’s latest remarks about the conflict with Iran led to a significant sell-off amid concerns about the ongoing situation,” commented Alex Kuptsikevich, chief market analyst at FxPro. He noted that Bitcoin appears to be consolidating between $66,000 and $69,000.

In addition, data from CryptoQuant shows that large Bitcoin holders, frequently referred to as whales, have transitioned from accumulating Bitcoin to net selling over the past year. This trend is thought to partially explain the lack of upward momentum in Bitcoin's price.

"On-chain data matches what the price action is indicating: there is no clear conviction in the market," remarked Jasper De Maere, a trader at Wintermute.

Moreover, institutional investor behavior has also been less than supportive. Recently, net inflows to U.S.-listed Bitcoin exchange-traded funds (ETFs) became negative, with investors withdrawing around $174 million, further affecting Bitcoin's price stability.

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The daily chart illustrates BTC's price consolidation. Source: BTCUSDT on TradingView.com

Featured image from OpenArt, chart from TradingView.com