Bitcoin Faces Dramatic Downturn Risk: Analyst Warns of Potential Crash to $10,000

The Warning Behind the Numbers

Bitcoin currently trades near $90.69K, marking a significant retreat from its October peak of $126.08K. However, this pullback may only be the beginning, according to Bloomberg Intelligence’s Senior Commodity Strategist Mike McGlone, who recently outlined a far more severe scenario for the world’s largest cryptocurrency.

McGlone’s analysis suggests that if Bitcoin breaks decisively above $100,000, it could trigger a dramatic reversal cycle—one that would see the asset collapse approximately 88% down to $10,000 by 2026. Such a move would represent an unprecedented correction from current levels, challenging the optimistic sentiment that has dominated recent market discourse.

The Economic Context

The strategist frames this potential crash within a broader macroeconomic narrative. He describes the current period as a “post-inflationary deflation” phase, where the reversal of wealth creation will likely catalyze the next major economic recession. According to McGlone’s thesis, this downturn would be primarily driven by the collapse of highly speculative assets with unlimited supply mechanisms—a category into which he places digital assets like Bitcoin.

This perspective highlights a critical tension in the cryptocurrency market: while Bitcoin’s fixed supply of 21 million coins is often cited as a deflationary feature, the broader ecosystem of unlimited-supply tokens and the speculative dynamics surrounding them could undermine confidence in the entire sector.

What Investors Should Monitor

The path to $10,000 would require Bitcoin to first achieve sustained momentum above $100,000—a threshold that remains contested. Current market dynamics suggest this remains possible but not inevitable. McGlone’s warning serves as a reminder that even established assets can experience severe corrections during macro regime shifts, and the cryptocurrency market’s relatively young history means historical precedent may offer limited guidance.