Bloomberg Intelligence’s senior commodity strategist Mike McGlone has often repeated his bearish outlook that Bitcoin (BTC) is likely to drop to $10,000.
Related: Cathie Wood has brutal response to 50% Bitcoin crash
Bitcoin needs to hold $75K level, analyst says
If the cryptocurrency fails to hold above the $75,000 level, then the scenario of a drop to $10,000 is very likely, he predicted.
In fact, the cryptocurrency traded around the $10,000 level for a long time before money flooded the crypto market following the COVID-19 crash in 2020. Liquidity in an era of lenient interest rates encouraged traders to make risky bets and it paid off as Bitcoin reached unprecedented heights in the coming years. Last year, it hit the all-time high of $126,080 in early October.
But we are long past that phase, McGlone warned. He also highlighted another trend in the crypto industry.
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Tether could eventually top Bitcoin, McGlone warns
While Bitcoin alone defined the earlier crypto era, now there are millions of cryptocurrencies. Though most of them track tangible value, stablecoins, which are nothing but “digital dollars,” represent the most enduring trend, the analyst added.
“Unlimited crypto supply and use-case rivals are Bitcoin headwinds.”
McGlone said he expected the “flippening” to continue and predicted Tether’s assets under management (AUM) overtaking Ethereum in 2026 and “eventually” even Bitcoin.
Related: Explained: What is a stablecoin?
Tether is the world’s leading crypto company and its USDT offering is the top U.S. dollar-pegged stablecoin.
McGlone warns of ‘hurricane’
The analyst asked crypto investors to accept, not reject, the bears and be prepared for a turbulent period ahead.
Bitcoin and Ether were trading at $67,926.99 and $2,071.42 at press time.
