Market Overview
Bitcoin (BTC) commenced a crucial week, marked by the Federal Reserve's upcoming interest rate decision for December, trading above $91,000.
Following a weekend dip below the $90,000 threshold, Bitcoin has seen a slight recovery, though prevailing sentiment suggests further potential declines.
Analyst's Forecast
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, has presented a new analysis suggesting Bitcoin could potentially fall to $50,000.
McGlone identified the $94,000-$84,000 range as critically important for Bitcoin. He anticipates that Bitcoin is more likely to conclude 2025 below the $84,000 mark.
The strategist highlighted that the average of Bitcoin's yearly highs from 2021 to 2023, combined with its 2024 lows, hovers around $50,100. This level, he noted, remains a possible scenario for a future decline.
According to McGlone, current data does not provide a strong basis to halt this potential downward trend. The analyst forecasts that BTC could play a role in triggering the next recession.
While Bitcoin has achieved significant valuations and spearheaded riskier assets since its inception in 2009, it could also lead a market comeback, according to the analyst's perspective.
Despite McGlone's overall expectation of a Bitcoin decline, he indicated that a sustained positive trend above approximately $94,000 within the year would serve as a signal for a broader market recovery.
Past Predictions and Scenarios
Previously, Mike McGlone had posited that Bitcoin could enter a severe bear market and drop to $10,000.
The analyst suggested that such an extreme bearish outcome could materialize if macroeconomic pressures and inherent structural weaknesses within Bitcoin and the broader cryptocurrency market persist.
McGlone characterized the $10,000 scenario as the worst-case possibility. He considers a BTC drop to $50,000, driven by weakening market sentiment, to be a more realistic projection.