Bloomberg Analyst Predicts Bitcoin Price Crash Amid US Recession Risks

A recent report from Bloomberg Intelligence suggests that Bitcoin's price may be closely tied to the performance of the US economy.

Senior commodity strategist Mike McGlone notes that extreme valuations in U.S. equities, relative to GDP, have reached levels not seen in nearly a century.

This, combined with unusually low volatility in major equity indices, could indicate a potential spike in volatility and a downturn in the stock market.

As Bitcoin is considered a high-risk asset, McGlone believes that it may struggle to maintain its current price if equities enter a sustained decline. This could lead to a scenario where the cryptocurrency's price drops significantly, potentially as low as $10,000 if a US recession coincides with a stock market peak.