Bloomberg's Mike McGlone Warns Crypto Bear Market May Be Starting, Sees Bitcoin Risking a Slide to $10,000

Huoxing Finance reports that Bloomberg Senior Commodities Strategist Mike McGlone said in a post on X that the crypto bear market could still be in its early phase. He added that if market beta weakens, Bitcoin may have room to drop toward $10,000. McGlone noted that since Bitcoin spot ETFs began trading in January 2024, total returns for the iShares Bitcoin Trust ETF (IBIT) and the SPDR S&P 500 ETF Trust (SPY) have been broadly similar. Over the same period, IBIT's volatility has been about four times that of SPY, with a 200-day correlation close to 0.5. Without meaningfully higher returns, he said, that combination of elevated volatility and correlation typically works against optimal portfolio allocation. He also pointed to the expansion of the crypto universe since Bitcoin launched in 2009, saying the number of crypto assets has grown into the millions. In his view, most lack fundamental backing, yet many are still assigned valuations in the billions of dollars.