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Bloomberg predicts a large-scale collapse of bitcoin to $10,000 as early as 2026
Сryptocurrency
The cryptocurrency market, which has been going through hard times since reaching October highs, is faced with a frightening new forecast.
Forbes writes about the warning of analysts who predict the collapse of the $3 trillion industry and the fall of the bitcoin exchange rate to the levels of 2020.
Since reaching a peak of $126,000, the bitcoin exchange rate has already fallen by more than 30%. However, according to experts, this may be only the beginning of a large-scale collapse.
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, believes that bitcoin could return to the $10,000 mark in 2026. Such a drop of almost 90% from current levels will reduce the capitalization of the entire crypto market from $3 trillion to $300 billion.
McGlone calls the reason for this scenario "post-inflationary deflation" and the inevitable collapse of highly speculative digital assets, most of which "track nothing" and have no real value.
The strategist draws an alarming analogy with the stock market in 2007. At that time, US stocks reached record highs, and the Fed began cutting interest rates to combat economic stress. Despite the reduction in rates, the market soon collapsed by more than 50%, leading to the global financial crisis of 2008.
"The fall of bitcoin may mirror the situation with stocks in 2007 against the background of the Fed's actions," warns McGlone, noting that since the Fed's September rate cut, bitcoin has already lost almost 25%.
Other analysts also see signs of weakness. David Morrison of Trade Nation notes that the market is "running out of steam." According to him, there is a real danger of a breakdown of recent lows, and a repeated fall to the level of $ 80,000 in the near future cannot be ruled out.