McGlone sees Bitcoin vulnerable to deeper equity-led slide

Bitcoin faces renewed warnings of a potential downturn, according to Bloomberg Intelligence senior commodity strategist Mike McGlone. He believes that a stock-market correction and tighter US monetary policy could push the cryptocurrency sharply lower, possibly towards $10,000. McGlone's bearish outlook is based on Bitcoin's failure to break above $80,000, its increasing sensitivity to equities, and the prospect of higher interest rates pressuring speculative assets.

The $10,000 figure is not a broad consensus but a potential reversion level if US stocks experience a major correction. This scenario assumes Bitcoin would act as a high-beta risk asset, amplifying losses in equities rather than providing protection like gold. Recent academic research supports this view, showing Bitcoin has transitioned from an idiosyncratic asset to a risk-on investment whose returns increasingly resemble those of the US equity market.

Technical indicators suggest Bitcoin has struggled around the $80,000 threshold and turned bearish on several measures. However, market data still shows varying correlations between Bitcoin and stocks, making it difficult to ignore Bitcoin's strong reactions to liquidity and risk appetite shifts. The Federal Open Market Committee meets on September 15 and 16, with policymakers preparing for a decision that could maintain restrictive financial conditions or tighten them further.