Bloomberg Analyst Warns Bitcoin Could Test $10K If Stocks Drop

A Warning Call from Bloomberg Analyst Mike McGlone

The cryptocurrency market is no stranger to wild price swings and bold market forecasts. Today, a leading strategist from Bloomberg is raising a red flag about where BitcoinBTC+0.52% might head next under specific economic conditions.

Mike McGlone, a senior commodity strategist at Bloomberg, recently shared a cautious scenario. He pointed out that Bitcoin could potentially drop down to $10,000 if the traditional US stock market goes through a severe and prolonged decline.

According to McGlone, the primary trigger for this potential slide would be a sustained 20% drop in the S&P 500 stock index.

Why Is McGlone Taking Such a Bearish View?

Mike McGlone has maintained a skeptical stance on crypto prices for quite some time. He turned noticeably cautious after Bitcoin breached the $100,000 landmark in early 2025.

Rather than seeing recent price rebounds as the start of a massive rally, he views them simply as a bear market bounce.

He believes that the arrival of spot Bitcoin exchange-traded funds (ETFs) changed how Bitcoin behaves. While ETFs helped bring digital assets into traditional mainstream finance, McGlone argues that they also diluted Bitcoin's unique speculative appeal.

Bitcoin can easily drop a zero, get down to $10,000, on one key thing that hasn't happened yet.

The single key event he refers to is a deep sell-off in traditional stock markets. McGlone thinks that a major stock market correction would expose vulnerabilities in high-risk assets that typically move together with equities.

It is worth keeping in mind that this $10,000 prediction is built on a specific macro condition. If stock markets remain strong or economic growth stays resilient, Bitcoin's price trajectory could look very different. However, if macroeconomic pressure builds and stocks drop sharply, riskier assets could face heightened downside pressure.

Comparing Bitcoin to Traditional Stocks: Is It a 'Stock Puppet'?

In his interview, McGlone went so far as to describe Bitcoin as a stock puppet. He argues that because Bitcoin moves closely in tandem with stock market swings, its high volatility makes it less appealing on a risk-adjusted basis.

To support his argument, he highlighted several contrasting statistics between Bitcoin and the S&P 500 index:

• Year-to-Date (YTD) Performance: Bitcoin fell by 7%, while the S&P 500 gained 13%.
• Two-Year Horizon: Bitcoin posted a 21% gain, whereas the S&P 500 index surged ahead by 47%.

Past performance of digital assets or financial market indices is not a guarantee of future returns. You can check updated market statistics and real-time prices on Bitkub Market.

Central Bank Tightening and Wall Street Forecasts

Another factor weighing on speculative assets is federal monetary policy. McGlone warned that tighter policy from the Federal Reserve could pressure crypto assets as investors turn to safe-haven yields offered by government bonds.

When interest rates stay elevated, risk-free bond yields become attractive. This shifts institutional interest away from higher-risk investments like cryptocurrencies.

During his remarks, McGlone also dismissed positive forecasts from Wall Street giants like BlackRock and JPMorgan, which projected around 10% annual returns for Bitcoin.

He labeled those institutional firms as sell-side players whose primary goal is marketing and selling financial products to clients.

Where Does Bitcoin Sit in the Market Today?

Looking at the current spot market, Bitcoin was trading near $82,000 at the time of writing, down about 1% over 24 hours.

Over a longer 30-day window, Bitcoin has declined by approximately 6%. This places the cryptocurrency roughly 35% below its peak record high of over $126,000.

Price action has been lively. Prices hit a two-week high on Wednesday before getting rejected right under $85,000. That recovery had followed a brief price drop below $80,000 driven by global inflation concerns.

Tracking Institutional Spot ETF Capital Flows

Institutional movement through spot Bitcoin ETFs has experienced noticeable shifts over recent trading sessions.

At first, spot Bitcoin funds saw three consecutive days of steady capital inflows. On October 21, net inflows topped $528 million—marking the strongest single-day intake since September 22, when funds attracted roughly $715 million.

However, that positive momentum took a sharp turn yesterday when institutional investors pulled money back out of ETF products.

More than $635 million left the funds in a single day. This withdrawal was led by BlackRock's IBIT fund, which alone saw outflows of at least $254 million.

What Are Technical Chart Analysts Watching?

While macro-focused strategists like McGlone highlight broader economic risks, technical chart analysts are pointing to immediate price levels.

Popular market observer Ali Martinez noted that the TD Sequential indicator, a chart tool used to identify trend exhaustion, printed a buy signal near $85,000.

Similarly, market analyst Joel Gerla noted that the chart setup remains constructive above $80,000, though he issued a clear key takeaway for traders:

Lose $80K, and it weakens.

The Bottom Line for Market Observers

Analyzing financial markets means weighing multiple viewpoints. On one hand, macro analysts warn that equity market pullbacks could pull crypto prices down. On the other hand, technical traders highlight short-term chart supports that keep the market steady above key levels.

Because broader stock indexes, central bank interest rates, and institutional fund flows all influence market momentum, keeping a balanced view on macroeconomic factors is always essential.