Crypto Analyst Predicts Alarming 90% Bitcoin Crash: Here's What You Need to Know
Bitcoin's meteoric rise to unprecedented highs this year has many celebrating, but a stark warning from a seasoned crypto analyst suggests the party might be over. Bloomberg Intelligence's senior commodity strategist, Mike McGlone, anticipates a dramatic 90% price crash for the world's leading cryptocurrency, potentially wiping out most gains and sending it tumbling to levels not seen in years. Investors are urged to brace for significant market turbulence.
Why a Massive Bitcoin Correction Looms
In a recent interview on the David Lin Report, McGlone, known for his accurate market predictions, delivered a sobering forecast for Bitcoin holders. Despite correctly predicting BTC's surge to $100,000, he now believes the cryptocurrency is poised to lose over 90% of its value, possibly reverting to $10,000 within the current market cycle. McGlone pointed to Bitcoin reaching six figures on December 6 as a psychological peak, indicating an overheated market rather than sustained strength—a classic "selling when there's yelling" scenario where euphoria blinds investors. Further supporting his bearish outlook, McGlone highlighted that since Bitcoin surpassed $100,000, gold has appreciated approximately 30% while Bitcoin has only managed an 8% increase. This underperformance, coupled with modest returns from major stock benchmarks like the S&P 500, suggests digital assets are struggling to maintain their dominance. He emphasized Bitcoin's increasing correlation with broader equity markets, with its 48-month correlation to the S&P 500 now at 0.6. This indicates Bitcoin is acting more like a "risk-on" asset, moving in lockstep with stocks rather than serving as an independent store of value. Shifting volatility signals, such as the VIX hitting yearly lows when Bitcoin soared, followed by a subsequent spike, further suggest an impending correction where gold may continue to outperform speculative assets.
The Unlikely Path to $1 Million
When pressed on whether Bitcoin could realistically reach $1 million, McGlone unequivocally dismissed the notion. He argued that the current market environment fundamentally differs from the conditions that propelled Bitcoin from $10,000 to $100,000. During its ascent from $10,000, market sentiment was largely negative, creating fertile ground for a long-term rally. In contrast, with Bitcoin trading above $100,000, the market is saturated with long positions, making it incredibly difficult to sustain upward momentum. McGlone concludes that the overwhelming weight of speculative exposure leaves Bitcoin vulnerable to a significant retracement, rather than positioning it for exponential growth.
