Bloomberg's McGlone: Bitcoin Could Retest $10,000 If S&P 500 Drops 20%

Bloomberg Intelligence senior commodities strategist Mike McGlone flagged Bitcoin's recent weak performance against equities and warned investors about the risks ahead. According to McGlone, the key question for Bitcoin is what will actually halt its downward trend. He noted that Bitcoin and the S&P 500 index's 200-day moving averages have historically moved in lockstep. However, the recent decline in Bitcoin, combined with beta indicators (which measure market risk appetite) hitting record highs, points to a growing divergence between the two assets. In a more optimistic scenario, McGlone suggested Bitcoin could once again catch up with the strong performance of equity markets. Related News Former U.S. President Joe Biden's Son Hunter Biden Makes an Interesting Crypto Statement: He Named a Single Altcoin

On the flip side, McGlone argued Bitcoin may be facing a new risk he dubbed the "first cryptocurrency curse." Recalling that Bitcoin emerged as the lone cryptocurrency in 2009 and now competes with thousands of digital assets, the analyst noted that the sector's effectively unlimited token supply could keep pressure on prices. Being first, it turns out, has its own complications.

McGlone said Bitcoin holding above its 200-day moving average could signal a recovery. The bigger risk, however, is that Bitcoin — which historically led risky assets higher — might this time lead them lower. According to the analyst, if the S&P 500 index sees a sustained correction of roughly 20 percent, the Bitcoin price could retest the $10,000 level. *This is not investment advice.