Bloomberg's Mike McGlone predicted that the price of Bitcoin, the leading cryptocurrency, could plummet to zero.
“In 2018, when Bitcoin was around 10,000, I said it would go to zero. I was 70% right as it went down to 3,000, but I was 30% wrong. I'm saying the same thing now. I think it could go back up to 10,000. So that's all inclusive. Unfortunately, when Bitcoin goes down, that means the stock market. That's normal,” McGlone said.
“This is a typical peak bull market that I saw in 1999,” McGlone argues.
Trickle down to the stock market
Bloomberg Intelligence's chief commodity strategist believes the Bitcoin selloff will spill over into the stock market. The analyst expects further volatility in the near future.
“If you look at the 200-day moving average of the VIX…the average is about 19.5, and the key fact is that the 120-day realized volatility for the S&P 500 is about 10%. So if we end the year, not only will we be half the VIX, but it will be the lowest since 2017. So we expect this Bitcoin selloff to trickle down to the stock market and increase volatility.” It could reach 16%,” he said.
The $90,000 support will be discontinued.
McGlone said the current amount of major support is about $90,000. Currently, the cryptocurrency is stuck between $90,000 and $100,000, but McGlone believes it will eventually collapse towards $50,000.
“The 200-day moving average has rolled over. MicroStrategy's 200-day moving average rolled over in August, so maybe we'll see a little bit of a pullback, maybe we'll get to 100,000, but I think it all depends on sellers reacting,” McGlone said.
