Bloomberg analyst predicts BTC could drop to 10000 if U.S. stocks fall 20%

Bitcoin could fall to around 10000 if U.S. stocks slump 20%, according to Bloomberg senior analyst Mike McGlone. McGlone noted that BTC has led gains in risk assets since 2009, but recent market movements suggest a potential end to the upswing. He highlighted BTC's rise above 100000 last year and gold's break above 5000 this year, alongside major central banks' tightening and rising government bond yields. As of October 15, the U.S. five-year Treasury yield was about 4.90%, and if it finishes the year above 4.98%, it would be the highest since 1999. High risk-free returns could negatively impact volatile non-yielding assets like BTC and gold. McGlone also pointed out that BTC's 50-week moving average is showing a downward trend similar to 2022-2023, while gold faces a risk of trend reversal due to rising Treasury yields.

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