Mike McGlone stated that the crypto bear market may be in its early stages and expects Bitcoin to fall back to $10,000

Mike McGlone, Bloomberg's senior commodity strategist, tweeted that the crypto bear market may be in its early stages and stated that if β (market risk) declines, btc-42">Bitcoin could fall back to $10,000.

He disclosed that since the iShares Bitcoin Trust ETF (IBIT) began trading in January 2024, its total return has been roughly on par with the SPDR S&P 500 ETF Trust (SPY), but the former's volatility is about four times that of the latter, with a 200-day correlation close to 0.5. In the absence of higher returns, high volatility and correlation are generally unfavorable for asset allocation. He also pointed out that since the birth of Bitcoin in 2009, the number of crypto assets has reached millions, most of which lack substantial support but still have valuations in the billions of dollars.