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A Bloomberg Intelligence analyst warns of the potential for a major correction in Bitcoin, with an extreme scenario of prices returning close to US$10,000 if market pressure continues to increase.
Bloomberg Intelligence strategist, Mike McGlone, assesses that the main forces that previously drove the Bitcoin rally are now beginning to weaken. The inflow of new capital into the crypto market is said to no longer be as strong as in the early phase of price increases.
According to McGlone, past major spikes in Bitcoin were largely triggered by aggressive accumulation by large players in the early phase, which effectively locked up supply in the market. When that phase ends, the price structure becomes much more vulnerable without sustained support from new demand.
Bitcoin last traded in the range of US$10,000 in 2020, when large companies began to enter and make massive purchases. This strategy reduced circulating supply and pushed prices up significantly, even without widespread participation from new investors.
However, as prices continued to rise, retail investors actually entered at higher levels. This activity is considered more momentum-following rather than creating strong fundamental demand.
The approval of a Bitcoin spot ETF briefly became an additional catalyst by opening access for institutional investors. Nevertheless, McGlone assesses that the inflow of funds from the ETF is now starting to slow down, while purchases by corporations are also no longer aggressive.
On the other hand, Bitcoin ownership is still concentrated among early holders with significant unrealized gains. This situation has the potential to trigger sharp selling pressure if market panic occurs.
"This is not about optimism or ideological certainty. It is purely about supply, demand, and the timing of capital entry," McGlone emphasized. In that context, the level of US$10,000 is considered a realistic reset area if market balance continues to deteriorate.
Monitor the market, manage risks, and don’t get caught up in euphoria.
Follow Becoming a Trader for insights, analysis, and crypto trading education every day.
Bloomberg Intelligence strategist, Mike McGlone, assesses that the main forces that previously drove the Bitcoin rally are now beginning to weaken. The inflow of new capital into the crypto market is said to no longer be as strong as in the early phase of price increases.
According to McGlone, past major spikes in Bitcoin were largely triggered by aggressive accumulation by large players in the early phase, which effectively locked up supply in the market. When that phase ends, the price structure becomes much more vulnerable without sustained support from new demand.
Bitcoin last traded in the range of US$10,000 in 2020, when large companies began to enter and make massive purchases. This strategy reduced circulating supply and pushed prices up significantly, even without widespread participation from new investors.
However, as prices continued to rise, retail investors actually entered at higher levels. This activity is considered more momentum-following rather than creating strong fundamental demand.
The approval of a Bitcoin spot ETF briefly became an additional catalyst by opening access for institutional investors. Nevertheless, McGlone assesses that the inflow of funds from the ETF is now starting to slow down, while purchases by corporations are also no longer aggressive.
On the other hand, Bitcoin ownership is still concentrated among early holders with significant unrealized gains. This situation has the potential to trigger sharp selling pressure if market panic occurs.
"This is not about optimism or ideological certainty. It is purely about supply, demand, and the timing of capital entry," McGlone emphasized. In that context, the level of US$10,000 is considered a realistic reset area if market balance continues to deteriorate.
Monitor the market, manage risks, and don’t get caught up in euphoria.
Follow Becoming a Trader for insights, analysis, and crypto trading education every day.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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