Since Bitcoin’s price fell below $30,000, numerous predictions have been made about the coin’s potential future price prospects. As the largest cryptocurrency in the world, Bitcoin has accumulated many price headlines, some of which are optimistic, while others are pessimistic.
One question that lingers, however, is whether another crash really means the end of the world for Bitcoin. In such a case, Mike McGlone, a senior analyst at Bloomberg, believes that even a drop in price to $10,000 would not be bad for Bitcoin.
Bitcoin is still outperforming the stock market
A drop in Bitcoin to $10,000 would certainly trigger a chain of events in other cryptocurrencies as most of the overall market sentiment relies on Bitcoin. While many short-term owners and some long-term owners are freaking out about the sale, the long-term outlook is still bullish.
Market analyst Mike McGlone compares Bitcoin’s performance to the stock market, and Amazon stock in particular. He points out that even with a 50% drop from its current price, BTC would still outperform Amazon’s stock.
Amazon has had one of the best growth in terms of share price over twenty years. Over the past 20 years, Amazon stock has generated total returns of over 7,000%. However, this is small compared to the amount of BTC that has grown since its launch in 2009, as the asset has risen 26,000x since it first traded at $1 in 2011.
“Bitcoin is up 130% to Amazon in a similar way, but that took about 25 years. Going back to $10,000 would still maintain Bitcoin’s unprecedented performance,” he said.
‘It Went Up So It Will Keep Going Up’ Risks in Bitcoin –
The lessons of well-performing, widely hyped assets show that price reversal can be the biggest risk once the masses get in. #Bitcoin at about $26,000 on August 28 is slightly less than at the end of 2020, comparable to… pic.twitter.com/3UdAbpLNLe— Mike McGlone (@mikemcglone11) August 28, 2023
Bitcoin is known for its wild price swings as digital currencies are emerging assets and volatility comes with them. With a current market cap of $506 billion, BTC has a market share of 48.3%. dominance in the crypto market.
BTC price fails to reclaim $26,000 | Source: BTCUSD on Tradingview.com
What’s next for BTC?
Bitcoin is currently trading at $26,000 after the cryptocurrency surged above $30,000 earlier this year, but fears have pushed the price back to current levels. However, at current levels, BTC is up over 30.75% from the same period last year, showing better price sentiment than in 2022.
While BTC could certainly drop further below USD 26,000, a drop towards USD 10,000 is highly unlikely as many things would have to go wrong for BTC to reach USD 10,000.
BTC is also gaining more mainstream appeal from institutions, especially with current spot Bitcoin ETF registrations. As a result, Bitcoin’s price is more likely to rise than fall in the coming months.
This is not the first time that $10,000 price predictions have come in regarding BTC. Late last year, Mark Mobius, founder of Mobius Capital predicted that Bitcoin could fall short term up to $10,000.
On the other hand, some optimistic predictions have been made recently. Tom Fundstrat, one of Fundstrat’s co-founders, believes the price of BTC could reach $150,000 or maybe even further towards the end of next year.
Featured image from iStock, chart from Tradingview.com