Bloomberg: Bitcoin’s drop to $ 10,000 won’t affect the value of the cryptocurrency

The collapse of the bitcoin rate to $ 10,000 will not shake the position of the flagship cryptocurrency, Bloomberg Intelligence senior strategist Mike McGlone said on social network X.

The expert compared the cryptocurrency and stock markets, citing Amazon shares as an example, which have gained more than 7000% over the past 20 years. At the same time, the growth of bitcoin has been more significant — since 2011, the cryptocurrency has increased by more than 27,000%. At the time of writing, bitcoin is trading at $ 27,438, according to Coingesco.

«Bitcoin is comparable to Amazon’s 130% gain in the same period, but it took about 25 years. Areturn to $ 10,000 would maintain the asset’s unprecedented performance ,» McGlone wrote.

The analyst noted that the 100-week correlation between BTC prices and Amazon shares at about 0.4 is the highest in history. McGlone also emphasized the importance of the development trajectory of the first cryptocurrency, which «migrates to the mainstream» — tools characteristic of traditional markets, including exchange-traded funds, are being created.

As for other digital assets, back in April of this year, Mike McGlone expressed concern about the risks of investing in the meme cryptocurrencies DOGE and SHIB. The crypto expert called DOGE and SHIB speculative assets that should be immediately removed from the market. And with the Federal Reserve tightening its policy and a looming recession, McGlone urged investors to get rid of these crypto assets as soon as possible.

Earlier, the Bloomberg strategist said that he believes in the future of the two top cryptocurrencies, bitcoin and ethereum, which managed to stay afloat even during the serious decline in the cryptocurrency market last year. According to the expert, despite the resistance from regulators, the flagship of the crypto market will return to its historical high of $ 69,000 in the near future. The analyst is confident that BTC will continue to outperform most financial assets, including gold and Treasury bonds, in terms of profitability.