Bloomberg Intelligence senior commodity strategist Mike McGlone warned in an interview that Bitcoin (BTC) could collapse below $10,000, citing the financialization of crypto through ETFs and a flood of competing digital assets as key factors driving what he called a prolonged bear market.
What Happened: Bear Market Call
McGlone made the remarks during an interview with crypto trader Elliot Wainman, arguing that BTC's bear market began with what he described as "massive excesses of 2024." He said the rally that followed Donald Trump's election and the launch of spot Bitcoin ETFs marked a definitive peak.
"Once we got through those ETFs, and once we went through that period of Mr. Trump getting elected and that massive pump in prices, that put in the peak," McGlone said. He added that the market is now in a "hangover period" that he expects to persist until speculative excess is purged.
The strategist also argued that the growth of alternative crypto assets has undermined Bitcoin's investment case, despite its fixed supply cap.
"I get Bitcoin's got limited supply, but now it's in the space. It's been financialized. It's been ETFs. You can trade numerous options on it, and it's no longer an exciting asset," he said.
McGlone noted that when BTC traded at $10,000, he predicted it would "add a zero," and now at $100,000, he expects it to "drop off the zero." He added that $10,000 is not necessarily the floor: "It could even get lower." Bitcoin was trading near $69,600 at the time of the interview, up about 1% over 24 hours.
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Why It Matters: Extreme Bearish Outlook
A decline to $10,000 from current levels would represent a drop of more than 85%, a magnitude last seen during Bitcoin's crash to roughly that level in 2020.
McGlone's call stands as one of the most bearish outlooks from a major financial institution analyst and runs counter to the prevailing view among institutional investors, many of whom have increased exposure through spot ETFs. His argument that financialization has diluted Bitcoin's appeal rather than strengthened it challenges a core narrative that has driven institutional adoption over the past two years.
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