Bloomberg veteran Mike McGlone has issued a cautious note on Bitcoin, suggesting it may eventually drop to $10,000. His commentary comes as Tether overtakes Ethereum by market cap to become the second-largest digital asset. McGlone sees this as a sign of structural change in crypto. He thinks stablecoins like Tether are becoming more central. They are bridging the U.S. financial system and crypto sector, which he calls a technological advancement. McGlone also credits Trump’s evolving stance on crypto for fostering a friendlier regulatory climate. But he warns that recent surges in crypto and stock markets could mirror past bubbles. High interest rates are keeping inflation in check but also pressuring bond yields. Record stock markets might fuel inflation, leading to political fallout. He describes a “lose-lose” scenario where Bitcoin, which led the rally, could guide a downturn. Given past cycles where BTC predicted risk appetite, he says it may test much lower levels if conditions worsen. This is not investment advice.
