Bloomberg Analyst Says a Drop to $10,000 Would Not Hurt Bitcoin

The senior Bloomberg analyst Mike McGlone compared Bitcoin’s metrics with those of the stock market and concluded that even a drop to $10,000 would not significantly shake the coin’s position.

As an example, the expert pointed to the corporate giant Amazon’s shares, whose returns over the last 20 years have been more than 7,000%. However Bitcoin vastly outperforms this metric — since 2011 the asset has risen by 26,000% when measured by the current price.

“Bitcoin is comparable to Amazon’s 130% on a similar metric, but that took about 25 years. A move back to the $10,000 level would still preserve the asset’s unprecedented performance,” McGlone noted.

He said the 100-week correlation between Bitcoin prices and Amazon shares at around 0.40 is the highest on record.

The analyst noted that the trajectory of Bitcoin’s development is also important, as it “migrates into the mainstream” — exchange-traded funds and other tools typical of the traditional market are appearing.

Although the first cryptocurrency has faced difficulties after a sharp rally in early 2023, its decline to the levels forecast by McGlone seems unlikely.

With a market capitalisation of $506 billion доминация биткоина составляет 48,3%. At the time of writing the coin traded at $25,970, down 0.57% on the day.

Compared with the same period last year, the asset has risen by more than 30%.

Earlier, trader and analyst Michaël van de Poppe refuted investors’ expectations that Bitcoin would fall to $12,000 and that altcoins would capitulate to a new bull cycle.

Head of the Matrixport research division Markus Thielen forecasted Bitcoin to reach $125,000 by the end of next year. Analysts at Standard Chartered reached a similar conclusion — $120,000 in 2024.