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Bitcoin Price Warning: $90,000 Support at Risk, Stock Market Could Feel Impact
Mike McGlone, Bloomberg Intelligence’s chief commodity strategist, has raised alarms about Bitcoin’s price trajectory, suggesting the leading cryptocurrency could see a dramatic downturn. Drawing on historical patterns, McGlone believes that Bitcoin’s recent consolidation between $90,000 and $100,000 may not hold, potentially paving the way for a drop toward $50,000.
Historical Perspective Fuels Warning
McGlone referenced his 2018 prediction, when Bitcoin was trading around $10,000. At the time, he forecasted a sharp decline to zero—though the cryptocurrency fell to $3,000 instead. “I was 70% right, 30% wrong,” McGlone admitted, framing his current warning as a continuation of a similar market cycle. He added that this is “classic peak bull market stuff” reminiscent of 1999, highlighting the recurring pattern of extreme optimism followed by steep corrections.
Volatility Spillover Into Stocks
The analyst also cautioned that Bitcoin’s potential decline could ripple into traditional markets. McGlone noted that volatility metrics are unusually low, with the VIX 200-day moving average around 19.5 and the S&P 500’s 120-day realized volatility near 10%—its lowest since 2017 if current levels hold. “I’m expecting this Bitcoin plunge to trickle down into the stock market, volatility to pick up, maybe just get to its average around 16%,” he explained, signaling a potential period of market turbulence.
Key Support Levels Under Threat
Currently, Bitcoin is testing crucial support near $90,000. McGlone highlighted that the 200-day moving average has rolled over, along with MicroStrategy’s own 200-day average back in August. While he allows for a possible bounce toward $100,000, he emphasizes that market behavior will depend heavily on responsive sellers in the weeks ahead.
As Bitcoin navigates these pivotal support levels, McGlone’s stark forecast underscores the potential for heightened crypto and stock market volatility in the coming months.
