Bloomberg Analyst McGlone Issues “Great Depression” Warning for Bitcoin

Bloomberg Intelligence’s Chief Commodities Strategist, Mike McGlone, warned investors that global markets are giving a dangerous signal similar to that seen before the Great Depression of 1929.

According to McGlone, the “Great Reversion,” a massive rotation from paper assets to physical assets, could hit Bitcoin the hardest, which he sees as a speculative risk asset.

McGlone described Bitcoin’s current performance as “disappointing,” noting that the cryptocurrency has lagged significantly behind the NASDAQ technology index this year.

Contrary to expectations that Bitcoin will reach $100,000, analyst McGlone predicts the price could drop to $10,000, effectively dropping a zero. Noting that there are over 28 million cryptocurrencies in circulation, McGlone argued that the “supply machine never stops,” creating a speculative excess. He suggested that a large portion of these assets should be reduced to zero, necessitating a significant “purge” in the market.

The strategist noted that Bitcoin’s ratio to gold has fallen by 50% from its peak levels, and modeled that this decline could continue by another 50% next year, potentially dropping the ratio to 10.

He argued that the first critical level for Bitcoin in a potential stock market correction is $50,000, but the real risk is a much deeper pullback.