Key Takeaways:
Bitcoin faces a potential 86% decline to $10,000 after Bloomberg Intelligence's Mike McGlone issued a hard technical sell signal on June 1.
"The divergence between the S&P 500 at all-time highs and the cryptocurrency sector rapidly losing ground is a dangerous anomaly that forces a hard technical sell signal," McGlone, senior commodity strategist at Bloomberg Intelligence, said.
The call follows over $4 billion in outflows from spot Bitcoin ETFs over three weeks, including a single-day record of $737.7 million, according to data from the investment product issuers. Bitcoin's failed breakout above $83,000 has reinforced bearish technical patterns, with the token trading below $73,000 as the Dow, S&P 500 and Nasdaq all closed at record highs on US-Iran deal hopes.
An 86% decline from current levels would erase more than $1 trillion in market value, potentially triggering cascading liquidations across leveraged positions. The stark contrast with equity market strength may accelerate capital rotation out of crypto into stocks, with the S&P 500's record run drawing institutional flows that might otherwise have entered digital assets.
Consumer sentiment in the U.S. has hit all-time lows even as the S&P 500 reaches all-time highs, an unprecedented divergence that historically has preceded market inflection points. For Bitcoin, the macro headwind compounds existing structural pressure: ETF outflows have persisted for three consecutive weeks, with the $737.7 million single-day exit on May 28 marking the largest withdrawal since the products launched.
McGlone's $10,000 target implies a return to levels last seen during the 2020 Covid crash, when Bitcoin briefly touched $3,850 before staging a multiyear rally. The prediction places the token below its 2017 peak of $19,783 and near its 2021 cycle low, suggesting the strategist sees a full unwind of the post-halving speculative premium.
The next key support level sits at $65,000, a zone that has held since November 2024. A break below that threshold would open the path toward $52,000, according to technical analysis from multiple trading desks. On the upside, Bitcoin would need to reclaim $83,000 to invalidate the bearish setup, a level that has acted as resistance since mid-May.
This article is for informational purposes only and does not constitute investment advice.
