Bloomberg Analyst Foresees Bitcoin Plunge to $10,000

The price of the leading cryptocurrency could plummet to $10,000, warned Mike McGlone, senior strategist at Bloomberg Intelligence, in an interview with Cointelegraph.

He believes this will occur as part of a global correction in financial markets.

The expert noted that excessive speculation and asset overvaluation in the crypto industry will influence the decline. According to McGlone, the value of some coins does not reflect their true worth.

“Look at Dogecoin — it still has a market capitalization of $20 billion. It should drop to zero. The entire space needs a cleanup, similar to the dot-com bubble,” explained the strategist.

He stated that Bitcoin needs to prove its status as “digital gold.” However, the challenging macroeconomic situation and market instability exert pressure on the asset.

McGlone added that investors will face a prolonged recovery from the current correction, rather than a quick “V-shaped” rebound like the one observed after the market crash amid COVID-19.

According to the analyst, the overheated U.S. stock market is another reason for the crisis. McGlone concluded that “its size is disproportionate to the economy, and such a gap cannot exist without consequences.”

European Commission vs Trump

The European Commission has proposed a 25% tariff on steel, soybeans, and diamonds from the U.S. in response to American metal tariffs, reports Reuters.

The initial tariffs will take effect on May 16, with additional ones related to agricultural goods introduced on December 1.

EU Trade Representative Maroš Šefčovič noted that the new measures will have a lesser impact than the previously proposed €26 billion tariffs.

Trump and 50% Tariffs

Meanwhile, U.S. President Donald Trump ruled out lifting existing tariffs and threatened to impose new 50% tariffs on Chinese goods.

According to BlackRock CEO Larry Fink, these events indicate signs of an impending recession. He stated that “many companies are already experiencing a downturn.”

Since April 7, the price of the leading cryptocurrency has begun to recover. At the time of writing, quotes are at ~$79,448.

Over the past day, the price of digital gold has risen by 6.3%. Most altcoins in the top 10 by market capitalization have declined. Ethereum lost about 14%, while XRP fell by 1.2%.

The total cryptocurrency market capitalization jumped by ~1.6% to $2.6 trillion. Bitcoin’s dominance stands at 60.5%.

Analysts at Standard Chartered have described Bitcoin as a hedge against tariff risks.