Bitcoin Vulnerable After FTX Crisis, Could Drop to 10K, Bloomberg Analyst Warns

According to Bloomberg Intelligence senior commodity analyst, Mike McGlone, Bitcoin (BTC) might fall to values last seen in July 2020.

McGlone thinks that there is a possibility that Bitcoin might decline 39% from its present price and revisit the $10,000 support level in the following weeks.

The macro strategist highlights in his latest analysis that the crypto selloff this week has disclosed the challenges that risk assets will face in the future. Talking to his more than 50,000 followers, McGlone tweeted:

“Now What, Bitcoin? $10,000-$20,000 Might Mark Range – The world’s most fluid 24/7 trading vehicle and leading indicator, Bitcoin, has broken down with implications for all risk assets. Bitcoin may revisit $10,000-$12,000 support, but about $1,000 Ethereum may be the key pivot.”

McGlone elaborated:

“The great risk-asset reversion of 2022 has become clear as of November 9, but it’s the remaining trading sessions that may set the stage for 2023, with Bitcoin – one of the fastest horses in the race, and top leading indicator – breaching support and risks revisiting $10,000 support.”

The Bloomberg analyst warns that the aftermath of FTX’s downfall which led to loss of trust of market participants in crypto, will have long-lasting impact:

“The loss of confidence from FTX’s downfall and its leader, Sam Bankman-Fried, is a shock to cryptos, but the macroeconomic dominoes may be more significant.”

At time of writing, Bitcoin is trading 21% down in the last seven days at $16,848, according to CoinMarketCap data. Ethereum is valued at $1,262 per coin at a weekly loss of 3% in valuation.