Bloomberg Intelligence analyst Mike McGlone reiterated his forecast that Bitcoin could crash to $10,000 in a detailed interview with Ellio Trades. He made these comments while the primary cryptocurrency traded near $70,000 on Thursday morning. McGlone argues that digital assets now correlate significantly more with traditional risk assets than they did in previous years. Investors purchasing cryptocurrencies must now anticipate equity market movements to succeed in this specific environment.
The analyst stated that cryptocurrencies have traded poorly against stocks for almost two years straight. He suggested that successful crypto buying requires the stock market to rise alongside digital tokens to generate returns. McGlone noted that reversing this trend would require significant market shifts to occur before the predicted drop. He did not immediately respond to requests for additional comment regarding the specific timeline for this projection.
Several industry experts reject the bearish outlook as implausible under current market conditions and structure. Bitwise Chief Investment Officer Matt Hougan predicts Bitcoin will reach $1 million within 10 years. Hougan respects McGlone as a data-driven analyst but finds the $10,000 target extremely unlikely to materialize. He noted that critics have prophesied Bitcoin’s doom for 17 years without success in any major instance.
Brian Huang, cofounder of Glider, argues that the entire cryptocurrency ecosystem prevents such a catastrophic decline. Huang explained that companies built around mining Bitcoin require prices above a certain threshold to remain profitable. He suggested mining firms would buy Bitcoin on the open market to pump prices rather than cease operations entirely. This economic incentive structure creates a natural floor for token valuation during periods of weakness.
Ryan Lee, chief analyst at Bitget, added that a collapse to $10,000 would require an extreme systemic shock. Lee cited potential triggers like a global liquidity crisis or nuclear conflict as necessary conditions for such a drop. Current market data points in the opposite direction with Bitcoin ETFs recording consistent inflows recently. These inflows reinforce institutional recognition of Bitcoin as a geopolitical hedge rather than a speculative risk asset. Lee noted that geopolitical escalation has not halted these inflows, suggesting resilience against external threats.
Non-Bitcoin cryptocurrencies face significant pressure with trading volumes plummeting over the past five months. Thomas Probst, a research analyst at Kaiko, reported a 60% decrease in combined volume for major altcoins since the October 10 liquidation event. Spot trading volume on Binance for altcoins declined between 80% and 85% during this specific period. This contraction reflects a broader reduction in market liquidity across the entire digital asset sector. Average market depth for these tokens has also decreased, signaling reduced capacity to absorb large trades.
Payward, the parent company of crypto exchange Kraken, paused its initial public offering plans until market conditions improve significantly. A report from CoinDesk cited two people with knowledge of the matter regarding the strategic decision to delay the listing. Kraken previously received approval for a master account from the Federal Reserve Bank of Kansas City recently. This infrastructure allows the exchange to connect to payment systems used by traditional banks and credit unions.
Total market capitalization for the crypto industry has shed approximately $652.2 billion recently. Data from CoinGecko shows the industry value dropped from $3.2 trillion to $2.5 trillion as of Wednesday. Hyperliquid’s native token bucked this downtrend with a 54.8% year-to-date increase. Such divergence highlights the varying performance across different digital asset classes during the downturn.
While extreme downside forecasts serve as useful stress tests, they should not distract from improving fundamentals. The industry structure has strengthened after enduring multiple de-leveraging cycles in recent years. Investors should monitor ETF inflows and institutional adoption as primary indicators for future price action. Long-term upward trajectories remain probable despite short-term volatility and bearish predictions from analysts.
