Mike McGlone of Bloomberg warns Bitcoin may fall to $10,000 if the S&P 500 drops 20%, citing key market pressures.
Mike McGlone, a senior strategist at Bloomberg Intelligence, has issued a stark warning that Bitcoin may drop to its long-term support level of approximately $10,000 if the S&P 500 experiences a sustained 20% correction.
Bitcoin Sell Signals - Elevated Stocks, Fed Hikes
Bitcoin is a volatile digital asset closely linked to the stock market, now facing pressure as it serves as a high-beta asset for numerous cryptocurrencies.
Its performance has largely mirrored that of the S&P 500 over recent years.
— Mike McGlone (@mikemcglone11) September 13, 2026
In his latest analysis, McGlone described Bitcoin as a "puppet of the stock market," highlighting three significant sell signals that could drive its price down.
Key Factors Influencing Bitcoin's Decline
McGlone identified several critical factors contributing to the bearish outlook for Bitcoin:
- The cryptocurrency's recent price recovery has stalled at $76,746, failing to surpass the crucial $80,000 threshold;
- Projected increases in the Federal Reserve's federal funds rate suggest a tightening of liquidity in speculative markets;
- The S&P 500 has surged well above its 200-week moving average, raising the likelihood of profit-taking by institutional investors.
Bitcoin's Performance Concerns
According to McGlone, Bitcoin's five-year returns have only matched those of the S&P 500, yet the cryptocurrency has exhibited nearly three times the volatility.
"From a risk management and portfolio perspective — this is a failure," he remarked.
Initially designed in 2009 to address issues during the global financial crisis, Bitcoin now carries the added volatility associated with competing cryptocurrencies, which has intertwined its fate with that of technology stocks.
Potential for Reversal
McGlone noted that the only scenario that could counter his bearish prediction would be if Bitcoin demonstrates resilience and begins to rise even as the stock market declines. Such a move would challenge its current classification as a high-beta risk asset.
Despite his ongoing prediction of a return to $10,000, he acknowledged that catalysts for Bitcoin's growth, including spot ETFs and institutional backing, have already been factored into current prices. He previously warned that a drop could occur if Bitcoin loses key Fibonacci retracement levels around $75,000.
Contrasting Views from Industry Figures
In contrast, Adam Back, CEO of Blockstream, expressed skepticism about the likelihood of Bitcoin falling below $65,000. He pointed out that the cryptocurrency's 200-day moving average has risen to this level, which historically serves as a support line during market downturns.
#bitcoin passes $65k 200wma https://t.co/6W3RSiLkB3
— Adam Back (@adam3us) September 13, 2026
Currently, Bitcoin is hovering around $77,000, with a lack of spot demand as investors await the Federal Reserve's decision regarding interest rates.
