Bloomberg commodity analyst Mike McGlone has reignited the debate over a much deeper Bitcoin bottom, predicting Bitcoin could fall as low as $10,000 later this year. The largest cryptocurrency by market capitalization is currently trading around the $66k valuation at press time, and a significant price drop would be catastrophic for the digital asset economy.
Post-Inflation Deflationary Reset Loading
McGlone tweeted:
McGlone argues that the 2020-2021 pandemic witnessed a massive monetary expansion, and that prior to that, Bitcoin traded near $10,000—a level he sees as a natural equilibrium and a fair price for the premier digital asset.
He also attached a chart with the tweet titled “Bitcoin Led the Way Up and May Back Down,” in which he shows Bitcoin’s yearly candles dominating gains alongside the S&P 500. While the stock market growth has cooled off/solidified, the premier digital currency is on the way down, potentially signaling the start of one of the greatest price tanks in history.
McGlone also predicted that Oil will fall back to $40 and Gold to $4,000 in a post-inflation, deflationary reset. He also dismissed the millions of cryptocurrencies launched since, stating that only a few offer any tangible value. However, he did single out the utility of stablecoins and their borderless capability, and stated that they will remain relevant for the time being.
 
Twitterati Respond
Users tweeted a range of responses to McGlone’s damning picture of Bitcoin’s future. Many disagreed with the take, stating that the author was deliberately spreading FUD (Fear, Uncertainty, and Doubt) to drive Bitcoin down and benefit Bloomberg’s institutional clientele.
One user replied:
It is true that derivatives, including options and perpetual futures, have taken the center stage in trading, and liquidity keeps adding up with time, nullifying McGlone’s earlier assumption that BTC could only manage this kind of growth with COVID-era stimulus levels. Institutions are also heavily involved in this economy through Bitcoin ETFs, and the digital asset is now less volatile than ever.
However, Peter Schiff, a known Bitcoin critic, jumped in and replied that BTC might find some support at the $10k level, but it is eventually headed even further down:
However, Schiff’s involvement immediately proved to be rage bait once again, and crypto holders tried to ridicule his crypto skepticism, pointing out that he had been calling for BTC’s death spiral for the better part of the last 15 years, yet it still hasn’t happened.
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