- Bitcoin is at risk of losing nine tenths of value, Bloomberg analyst warns.
- He says we are in ‘post-inflation deflation’ and anticipates recession.
- Key rate decisions expected from the ECB, Bank of England, and Bank of Japan.
Bitcoin’s price is at risk of collapsing another 88% to hit $10,000 in 2026, a Wall Street analyst warns.
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said on LinkedIn he expects the top cryptocurrency’s price to crater 90% below its $126,000 record by next year.
“Bitcoin’s rally above $100,000 may have sparked a cycle back toward $10,000, potentially in 2026,” McGlone said. “Wealth-creation reversion will likely drive the next recession, led by a collapse in highly speculative, unlimited-supply digital assets — most of which track nothing.”
McGlone’s doomsday forecast comes as the top crypto trembles near $90,000, down 30% from its all-time high set in October. In December, the top crypto traded between $85,000 and $95,000.
Bitcoin is down 13% on the year, significantly underperforming other assets like stocks or gold. The S&P 500, a broad index of US equities, is up 17% on the year. Gold price is also up 64% in 2025.
McGlone describes the new paradigm as “post-inflation deflation,” a period when prices crash after an inflationary cycle. “Falling Bitcoin may mirror 2007 stocks vs the Fed,” he wrote in Bloomberg Terminal.
It is far from his first bearish call. In November, he predicted Bitcoin dropping to $50,000.
Over the past 24 hours, Coinglass shows $230 million in liquidations in Bitcoin long positions, compared to just $60 million in shorts, suggesting traders anticipating a breakout were caught flat-footed.
Last week, Bitcoin exchange-traded funds drew $287 million, DefiLlama data shows, after a brutal November saw $3.5 billion in selloffs.
Big macroeconomic week
Central banks worldwide are in focus, with rate decisions due from the European Central Bank, Bank of England, and Bank of Japan.
US markets are bracing for one of the most consequential data weeks of the year after the Fed slashed rates to the lowest level in three years and raised fresh doubts about the true state of the labour market.
December 10th’s Federal Open Market Committee meeting delivered a 0.25% interest rate cut, three dissenting votes, and a rare admission from Chair Jerome Powell that job growth may have been overstated for months.
Together, the data will shape expectations for whether the Federal Reserve can keep cutting in 2026 or needs to pause longer than markets hope, said Ed Yardeni, president of Yardeni Research.
“This week is loaded with long-delayed government data releases, including on employment and inflation, which will provide a reality check on the economy’s performance in the final weeks of 2025,” he said.
Crypto market movers
- Bitcoin down 0.1% over the past 24 hours, trading at $89,900.
- Ethereum is up 1.5% over the past 24 hours trading at $3,150.
What we’re reading
- Pantera, Coinbase pile on as crypto startups raise $176 million this week — DL News
- Stream Finance founders sue business partner, allege $93m used to cover personal losses — DL News
- Crypto.com and Kalshi Lead Prediction Market Coalition Setup — Unchained
- Is Ethereum the Next Amazon? Haseeb Qureshi on Revenue, Profit & Long-Term Value — Milk Road
- Bitcoin treasury Strategy keeps its spot in the Nasdaq 100 — DL News
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.