CoinDesk reported on Monday that Bitcoin could potentially plummet to 10,000 USD, sparking concerns about a U.S. economic recession.
Mike McGlone, a strategist at Bloomberg Intelligence, warned that the collapse of the cryptocurrency bubble could drive Bitcoin down to 10,000 USD. This, he cautioned, might trigger a stock market sell-off and push the U.S. economy into a downturn.
In a post on X (formerly Twitter), McGlone observed that while risk appetite has driven cryptocurrency buying since 2008, recent trends indicate a shift towards selling pressure.
He explained that eroding trust in cryptocurrency assets like Bitcoin is leading to sharp price declines and heightened volatility.
Consequently, McGlone believes Bitcoin could plunge to 10,000 USD.
He predicted that a Bitcoin price collapse would likely precipitate a stock market crash.
McGlone highlighted that U.S. stock valuations have reached a century-high relative to gross domestic product (GDP), indicating significant overvaluation.
Given this backdrop, a cryptocurrency collapse could have far-reaching effects on the stock market. He suggested that the U.S. asset market might face a crisis triggered by Bitcoin and other digital currencies.
According to CoinDesk, McGlone forecasted that amid this potential asset market collapse, traditional safe-haven assets like gold and silver would likely rally.
As of this report, Bitcoin is trading at 68,879 USD, down 0.05% over the past 24 hours.