Bloomberg's senior commodity strategist, Mike McGlone, has issued a stark warning: Bitcoin could plummet to $10,000, a level last seen in 2020. McGlone cites Bitcoin's overextension relative to gold and equities, suggesting a "normal reversion" could be imminent. This potential collapse is attributed to several factors¹ ²:
- Overvaluation: McGlone believes Bitcoin's price is propped up by unsustainable enthusiasm rather than intrinsic value.
- Speculative Excess: The proliferation of cryptocurrencies, with approximately 20 million coins listed on CoinMarketCap, breeds instability.
- Macroeconomic Reset: A broader market correction, intensified by US policy shifts, could push Bitcoin's price down.
Divergent Expert Views
Not everyone agrees with McGlone's prediction. Tim Draper, a renowned investor and billionaire, expects Bitcoin to reach $250,000 by the end of 2025, driven by³:
- Institutional FOMO: Companies are scrambling to figure out Bitcoin custody, and those that laughed at the idea two years ago are now striving to accumulate BTC.
- Growing Adoption: Draper believes it's becoming "irresponsible NOT to own Bitcoin".
Current Market Situation
Bitcoin is currently trading at $110,711.84, with a 0.89% decrease in the last 24 hours. The Bitcoin/gold ratio stands at 35, but McGlone suggests it may drop to 25, indicating a potential decline in Bitcoin's value relative to gold