The Bitcoin price has This year to historical highlights increasedBut not everyone believes that the rally will last. A new warning from a crypto analyst suggests that the world’s largest cryptocurrency could be At the point of a dramatic price crashWith the possibility to erase almost all his winnings and tumble back to levels that are not seen in years.
Why a Bitcoin -Prijsscrash of 90% can be for us
In a recent interview about the David Lin report, a financial news channel on YouTube, Bloomberg Intelligence Senior Commodity Strategist Mike McGlone issued A grim warning for Bitcoin holders. After years of accurate calling the most important price levels, including the increase to $ 100,000McGlone now predicts that BTC could wipe out more than 90% of its profit, which may bring back to $ 10,000 in this market cycle.
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The Bloomberg strategist explained that Bitcoin’s climb to six digits was marked on December 6 An important psychological threshold. According to him, that milestone less was a sign of long -term strength and more a signal that the market had overheat. He described the Golf as an example of the textbook of ‘sales when there is shouting’, which means that investors often Get caught in the euphoria At the top.
Because Bitcoin crossed $ 100,000 on December 6, McGlone noted that Gold has appreciated About 30%, while BTC has only added about 8%. Stock market benchmarks such as The S&P 500 Have also posted a modest return in the same period, which means that digital assets have difficulty showing dominance.
McGlone emphasized the growing connection between Bitcoin and wider stock marketsNote that his 48-months correlation with the S&P 500 is now at 0.6. He suggested that this pattern underlines Bitcoin’s transformation in a risk-to-activemove together with the stock market performance instead of acting as an independent value storage.
As an addition to his bearish attitude, the Bloomberg strategist pointed out that volatility signals shift. In August, the Volatility index (VIX) Touch the lowest level of the year around 14.2, while Bitcoin reached new highlights at the same time. Towards the end of the same month, volatility has been re -enriched, which suggests that the market sentiment can change. For McGlone, these signals indicate that investors have to prepare for a potential correction phase, where gold will probably continue to surpass than the surpassing of BTC and other speculative assets.
Analyst says Bitcoin up to $ 1 million is unlikely
During the interview, Lin wondered if Bitcoin could ever climb to $ 1 millionPointing to the same logic that it actively brought it naturally from $ 10,000 to $ 100,000. McGlone rejected the idea and emphasized that the current market environment is fundamentally different and does not support such a outcome.
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The Bloomberg strategist explained that when Bitcoin acted near $ 10,000, the market sentiment was deep negative, which created the ideal conditions for a long-term rally. For a price above $ 100,000, on the other hand, the current market is long positionsMaking it more difficult for BTC to preserve an upward momentum. In his opinion, the pure weight of speculative Bitcoin has left vulnerable for a potential retracement instead of determining the stage for exponential growth.
Featured image of Getty Images, Chart van TradingView.com