- No scarcity?
- A former bull
In his latest social media post, Bloomberg’s McGlone is predicting a devastating downward spiral for the flagship cryptocurrency.
He is convinced that Bitcoin will not stop at $50,000 as a “floor” or support level. Instead, he sees the aforementioned price target as merely a waypoint.
McGlone argues that 2025 likely marked the definitive top of the cycle. The next year will be the year of a catastrophic “reversion to the mean.”
The analyst’s mean reversion target currently stands at $10,000.
Why $10,000? This figure is roughly where Bitcoin was changing hands before the speculative mania of the post-2020 era. The Bloomberg guru likely views the price appreciation since then as largely driven by “excess liquidity”. A drop to $10,000 would represent a “return to normal.”
No scarcity?
McGlone argues that gold is fundamentally scarce, not just because it is hard to mine. If you want a precious metal store of value, you only have three other real options in the physical world: silver, platinum, and palladium.
On the other hand, the Bloomberg analyst says that the crypto asset class is inflationary and infinite.
McGlone believes that this oversupply of “crypto assets” dilutes the capital entering the space.
A former bull
McGlone has not always been a bear. In fact, for years, he has been one of the loudest institutional voices predicting Bitcoin would inevitably hit $100,000.
During the stimulus era, McGlone was extremely bullish. He argued that Bitcoin was maturing into a global reserve asset.
By 2025, however, McGlone fully abandoned the “digital gold” narrative. He began pointing out a “divergence”: gold was hitting all-time highs, but Bitcoin was struggling to keep up.
He believes the global economy is entering a deflationary recession. In this environment, cash is king. Hence, this is supposed to justify his uber-berish target.