Hold onto your hats, because the cryptocurrency world might be on the brink of a seismic shift. Bloomberg Intelligence strategist Mike McGlone is sounding the alarm, warning that Bitcoin’s price could plummet a staggering 85% to $10,000, as the crypto ‘bubble implodes.’ But here’s where it gets controversial: while some see this as a healthy correction, McGlone argues that the narrative around crypto is fundamentally changing—and not for the better. Is the ‘buy-the-dip’ mantra of the past decade officially dead?
McGlone points to several factors fueling this shift. Surging stock markets with unusually low volatility, coupled with waning faith in former U.S. President Donald Trump’s crypto-friendly stance, are creating a perfect storm. Meanwhile, gold and silver traders are cashing in at a pace not seen in half a century, signaling a broader shift in investor sentiment. And this is the part most people miss: these trends, according to McGlone, spell more trouble ahead for Bitcoin investors.
This isn’t McGlone’s first warning, but it comes at a particularly grim time. Bitcoin has already lost nearly 30% of its value in the past month, part of a crypto downturn that’s wiped out $2 trillion in market value. Investors have pulled $678 million from Bitcoin exchange-traded funds in February alone, extending a $6 billion selloff since November, according to DefiLlama data. Are we witnessing the beginning of the end, or just another dip in a volatile market?
Of course, not everyone is hitting the panic button. U.S. Treasury Secretary Scott Bessent recently argued that crypto-friendly legislation like the Clarity Act could restore investor confidence and boost prices. And financial giants like BlackRock and Goldman Sachs are doubling down on their crypto exposure, betting on Bitcoin and alternatives like Ethereum. But is their optimism misplaced, or are they seeing something the rest of us aren’t?
Adding to the turmoil, the tech sector—which Bitcoin’s price often mirrors—is reeling from the ‘AI scare trade.’ Fears of disruption by artificial intelligence have sent tech stocks tumbling. BlackRock’s flagship tech ETF, which tracks industry leaders like Microsoft and Oracle, is down 23% year-to-date. Microsoft itself lost a staggering $357 billion in a single day in February, the second-largest selloff in history. Could AI be the unexpected catalyst that derails both tech and crypto?
‘Technological innovations are inherently disruptive,’ notes Ed Yardeni of Yardeni Research, ‘and AI is no exception.’ The pace of technical obsolescence is accelerating at ‘warp speed,’ spooking investors who are dumping stocks of companies vulnerable to AI disruption. But does this mean crypto is collateral damage, or is it a separate issue altogether?
As of now, Bitcoin is down 2.2% in the past 24 hours, trading at $68,717, while Ethereum has fallen 4.4% to $1,971. Where do we go from here? Is this the calm before the storm, or just another bump in the road?
What’s clear is that the crypto landscape is more divided than ever. While some see opportunity, others see catastrophe. What do you think? Is McGlone’s prediction spot on, or is he overreacting? Let’s debate in the comments.
For further reading, check out these thought-provoking articles:
- Bitcoin needs a quantum upgrade. So why isn’t it happening? — DL News
- Clarity Act will lift Bitcoin price, says Treasury Secretary Bessent — DL News
- BlackRock Just Chose Uniswap. The Market Didn’t Care. Here’s Why. — Unchained
- Stop obsessing over the bottom — Milk Road
- Binance France boss targeted in failed home invasion wrench attack — DL News
Lance Datskoluo, DL News’ Europe-based markets correspondent, is on the pulse of these developments. Got a tip? Reach out at lance@dlnews.com.
