Bitcoin is losing its status as 'digital gold' and may drop to $10,000, according to Bloomberg strategist Mike McGlone. He cites its correlation with U.S. stocks and Federal Reserve tightening as key factors for this bearish outlook.
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Bitcoin is rapidly losing its status as independent digital gold and turning into an ordinary stock market puppet, Bloomberg Intelligence senior macro strategist Mike McGlone warns in a new review. In his assessment, its rigid correlation with U.S. equities and the inevitable tightening of Federal Reserve policy have created critical downside signals for the leading cryptocurrency, potentially sending the asset to a multiyear low.
Bitcoin resistance at $76,746 against S&P 500 stretch and Fed tightening in September 2026. Source: Mike McGlone / Bloomberg Intelligence
Bloomberg Intelligence's analysis highlights three pressure factors that have activated bearish signals on the charts:
McGlone is categorical: Bitcoin no longer functions as a defensive asset. Over the past five years, its returns have merely matched those of the S&P 500, while exposing investors to nearly three times as much volatility.
From a portfolio analysis perspective, this is an inefficient trade that undermines Bitcoin's status as a "safe haven." The situation is further aggravated by the dilution of the industry: created in 2009 as a unique instrument, Bitcoin is now forced to carry the burden of a higher beta for millions of new altcoins, ultimately tying it to the trajectory of technology stocks.
This close relationship with Wall Street makes the crypto market vulnerable to systemic shocks. According to McGlone's calculations, if the S&P 500 enters a natural correction phase and loses 20%, Bitcoin will inevitably plunge toward its long-term fundamental pivot in the $10,000 area.
Bitcoin can invalidate this scenario only if it proves its independence and begins to rise despite falling stocks. For now, macroeconomic indicators point in the opposite direction.
The key factors include Bitcoin's stalled price rebound at $76,746, anticipated Federal Reserve rate hikes, and the S&P 500's significant rise above its 200-week moving average.
Bitcoin's increasing correlation with U.S. equities is diminishing its unique status as 'digital gold,' making it more susceptible to stock market fluctuations.
Bloomberg's analysis suggests that Bitcoin may face critical downside signals, potentially leading to a multiyear low due to various market pressures.
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