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Key Insights:
- Bloomberg strategist Mike McGlone warned Bitcoin could fall back to $10,000.
- Bitcoin’s link with gold turned negative for the first time in six months.
- Traders awaited the Fed’s September meeting as markets looked for direction
Bloomberg strategist Mike McGlone warned that the Bitcoin price could slide from near $110,000 to $10,000.
His note came as Bitcoin broke from its correlation with gold, which is now trading close to record highs. Traders are watching the Federal Reserve for clues on the next move.
The Sharp Risk for Bitcoin
In his recent tweet, Bloomberg Intelligence’s senior commodity strategist Mike McGlone said Bitcoin might face a deep decline.
He noted that the coin, born after the 2008 financial crisis, had become a leading risk asset. He warned that its price could return to much lower levels.
According to the post, McGlone explained that Bitcoin’s rise had been extreme compared to gold and stocks.
He shared a chart showing the three assets together, which suggested Bitcoin was stretched well beyond normal.
He believed a move toward $10,000 would be possible if the market pulled back.
This marked a big contrast with Bitcoin’s present value. The asset has been trading above $110,000 in recent days.
Similarly, a drop to $10,000 would mean losing almost 90% of its price. McGlone did not give an exact timeline but stressed that the level could act as a normal reversion point.
He also pointed out that the number of cryptocurrencies had grown sharply since Bitcoin’s launch.
Data from CoinMarketCap showed about 20 million coins were listed. This highlighted how the space had expanded from one asset to millions quickly.
Gold and Bitcoin No Longer Correlated
It is important to mention that while Bitcoin faced doubts, gold moved closer to record highs.
Community analyst Maartunn from CryptoQuant noted that the correlation between the two assets had turned negative.
This was the first time since February 2025 that they moved in opposite directions.
At the start of September, BTC stayed within a narrow range, trading between $107,000 and $113,000.
Gold, on the other hand, traded above $3,500 for the first time. The difference showed a clear split between the two markets.
Maartunn said this shift might show how investors viewed the assets differently. Gold still carried its image as a safe store of value.
Bitcoin, however, looked more like a risk-driven coin. The change raised questions about whether the idea of Bitcoin as “digital gold” still held.
Traders Await Fed Meeting for Next Signal
It is worth noting that despite market pressure, Bitcoin staged a short rebound. It rose from $107,250 on September 1 and reached $112,600 after three days of gains.
It then slipped again, falling by 2.23% to $109,651.39 at the time of writing. Markets now look ahead to the Federal Reserve’s meeting on September 16 and 17.
In addition, August data showed slower job growth and higher jobless claims.
Private payrolls rose by 54,000, far below the expected 75,000 and well under the 106,000 seen the month before. Jobless claims climbed to 237,000, up by 8,000.
It is important to add that the weaker data led traders to expect a rate cut from the Fed this month.
According to estimates, the odds of a reduction stood at 97.4%. Such a move could affect Bitcoin and gold prices in the coming weeks.
With McGlone’s warning, the break in correlation with gold, and an important Fed meeting ahead, the path of Bitcoin remained uncertain.
Investors were left watching whether the coin would hold above current levels or begin the sharp fall that McGlone suggested.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
