$100K or Bust: Bloomberg Strategist Warns Bitcoin Could Collapse 50%
As Bitcoin undergoes a short-term correction, a divided market outlook emerges. Some consultants warn {that a} break under the psychological $100,000 degree might set off an additional plunge to $56,000.
On the opposite hand, on-chain knowledge analysts recommend the present downturn is a wholesome adjustment.
McGlone Identifies $100K as Critical Support
Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, lately asserted on a podcast that $100,000 represents a profoundly vital worth assist for Bitcoin. The collapse of the $100,000 would mark the top of Bitcoin’s six-figure worth, an emblem lengthy related to high volatility.
Bitcoin’s worth has fallen by 20% lately. Consequently, that is extremely more likely to affect market sentiment negatively. McGlone was harshly important, stating that, apart from $300 billion in stablecoins monitoring US Treasury values, there are not any property monitoring something substantial.
He continued, “People are going to appreciate, yeah, okay, observe’s nothing, which is (going to) flush out 90% of it, after which we’ll get again to constructing an honest market.”
High Correlation Signals Broader Market Risk
The strategist warned {that a} collapse in worth would seemingly not cease with the crypto market. He defined, “If the market continues to trickle down under 100 thousand, these are dominoes doubtlessly falling as a result of it’s very extremely correlated to the inventory market.”
A chart he connected to a post on X confirmed the latest correlation between the US S&P 500 index and Bitcoin’s worth reached 0.5332. This high degree suggests a possible S&P 500 dip ought to Bitcoin undergo a deadly decline.
He famous, “Now it’s virtually the identical commerce as a result of lots of that cash has been coming from ETFs that pile on is coming from individuals who have historically been extra concerned within the Nasdaq and the S&P 500.”
McGlone additionally gave weight to the chance that Bitcoin’s worth might drop to $56,000 within the worst-case situation.
He famous that imply reversion is synonymous with humility within the markets. Indeed, his have a look at the chart exhibits how regular it’s been for the first-born crypto to revert to its 48-month transferring common, now round $56,000, after equally prolonged rallies as in 2025.
On-Chain Data Suggests ‘Mild Bear Phase’
Conversely, on-chain knowledge analysts provided a special perspective, arguing the present drop is distinct from historic “true crashes.” Glassnode, a cryptocurrency on-chain knowledge platform, printed a report on Wednesday. In this report, the platform famous that Bitcoin’s unrealized loss is at present considerably decrease than throughout historic bear markets.
They acknowledged, “Unlike the 2022–2023 bear market, the place losses reached excessive ranges, the present studying of three.1% suggests solely average stress, corresponding to mid-cycle corrections in Q3–This fall 2024 and Q2 2025, all of which remained under the 5% threshold.”
“As lengthy as unrealized losses keep inside this vary, the market will be categorised as a gentle bear part characterised by orderly revaluation moderately than panic.”
However, Glassnode cautioned, “a deeper drawdown pushing this ratio above 10% would seemingly set off broader capitulation and mark the transition right into a extra extreme bearish regime.”
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