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In a tweet published today, Bloomberg’s senior commodity strategist, Mike McGlone, recalled the event that triggered the creation of Bitcoin — the Great Recession of 2008. It prepared the ground for the appearance of not only BTC but also “a flood of cryptocurrencies.”
McGlone pointed out that there are approximately 20 million coins listed on the CoinMarketCap website. And now, he says, sharing a graph, that the leading crypto among them all, Bitcoin, may collapse from its current $110,000 level back to $10,000.
McGlone's Bitcoin $10,000 crash warning
McGlone has mentioned a “key risk-asset leading indicator” in his tweet, sharing a chart that features Bitcoin, gold and the S&P 500 index. McGlone argues that Bitcoin is too stretched relative to gold and equities, stating that, currently, a bubble-like overextension could be forming.
It may push Bitcoin back toward the $10,000 level as part of a “normal reversion.”
Besides, in a tweet published earlier today, McGlone hints that Bitcoin could lose a bit of its value against gold. While currently the Bitcoin/gold ratio stands at 35, meaning that one BTC can buy 35 ounces of gold, then, he suggests, it may drop to 25 since “a slight downward rotation, common in commodities, may have begun.”
Bitcoin to $250,000 by end of 2025: Tim Draper
The renowned investor and billionaire Tim Draper has doubled down on his earlier forecast that Bitcoin would reach $250,000. On Wednesday, he tweeted that he still expects BTC to hit that astronomic price level before the end of the year.
He believes that the main driver for that is the “institutional FOMO” (fear of missing out). Draper said: “We're watching banks and boardrooms across America scramble to figure out Bitcoin custody.” Companies that laughed at the idea of Bitcoin just two years ago, he said, are now striving to accumulate as much BTC as they can and put it on their balance sheet.
“It's becoming irresponsible NOT to own Bitcoin,” according to Draper.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team