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Bloomberg’s Mike McGlone Warns Bitcoin Slide Could Signal Recession Risk, Flags Tail Case to $10,000

He argues that stretched equity valuations with unusually low volatility signal that crypto losses reflect rising systemic risk.

Overview

  • Bitcoin traded near $68,800 as the broader market fell, with 85 of the top 100 tokens lower and privacy coins monero and zcash down about 10% and 8%.
  • McGlone links the crypto downturn to U.S. market-cap-to-GDP near century highs and eight-year lows in 180-day volatility for the S&P 500 and Nasdaq 100.
  • He outlines an initial 'normal reversion' that maps to roughly $56,000 for bitcoin using an S&P 500 level of 5,600, with a deeper slide to $10,000 contingent on a U.S. equity peak.
  • He says the post-2008 'buy the dip' playbook may be failing as the 'crypto bubble' implodes, noting gold and silver are gaining and could transmit volatility to equities.
  • Analyst Jason Fernandes disputes a collapse thesis, calling a move toward $10,000 a low-probability tail risk that would likely require a severe credit and liquidity shock.