Senior commodity strategist at Bloomberg Intelligence, Mike McGlone, is warning that Bitcoin (BTC) could drop by around 90% from the current level.
In an interview on the David Lin Report, McGlone says Bitcoin could plummet to a low five-digit price last witnessed in September 2020.
“I think it loses a zero now. Go back to $10,000. That’s not a big deal in terms of Bitcoin’s history. But for people who own it, it is.”
The Bloomberg Intelligence strategist, who had some years back predicted Bitcoin would rise from around $10,000 to a six-figure price, says the reasons for his bearish thesis include the embrace of the crypto king by the government and the proliferation of digital assets.
“Back then, Tether was $2 billion [market cap]. Now the whole crypto dollar space is approaching $300 billion… All those crypto dollars we’re investing in treasuries. And back then, it was when the Trump administration hated it. I’m like, ‘okay, I love it.’
And now that they tilted over and they love it. And everybody’s jumping on board… Just a classic example. You’re supposed to be backing off and staying away.
And what’s changed is that back then, I really liked the narrative that Bitcoin had a definable diminishing supply. And increasing demand and adoption. Get it? Price must go up over time. Now on CoinMarketCap.com, they say Bitcoin is supposed to be limited to 21 million coins. CoinMarketCap.com is approaching 21 million cryptocurrencies [listed]. In 2009, there was one. There’s an unlimited supply.”
According to McGlone, Bitcoin is a commodity and commodities are “wonderful to trade” but terrible for buying and holding.
“So they’re commodities and they’re expensive and people are buying them at the highs. The lesson in commodities is that they go down because they went up. And they go up because they went down.
So, I think we’re just going to head towards that going-down phase and it’s going to be pretty enduring.”
Bitcoin is trading at $111,596 at time of writing.
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