Since the price of Bitcoin fell below $30,000, numerous forecasts have been made on the currency’s potential future price outlook of the asset. As the biggest cryptocurrency in the world, Bitcoin has amassed price headlines, some of which are optimistic while others are pessimistic.
However, a question that lingers is whether another crash is really the end of the world for Bitcoin. In such an event, Mike McGlone, a senior analyst at Bloomberg, believes that even a decrease in price to $10,000 would not be bad for Bitcoin.
A fall in Bitcoin to $10,000 would definitely lead to a chain of events in other cryptocurrencies, as most of the general market sentiment relies on Bitcoin. While many short-term holders and some long-term holders may panic sell, the long-term outlook is still bullish.
Market analyst Mike McGlone puts the Bitcoin performance in comparison with the stock market, and the Amazon stock in particular. He points out that even with a 50% drop in its current price, BTC would still be outperforming Amazon stock.
Amazon has had one of the best growth in terms of stock price in 20 years. Over the past 20 years, Amazon shares have generated a total return of over 7,000%. However, this is small when compared to how much BTC has grown since its launch in 2009 since the asset is up 26,000x since it first traded for $1 in 2011.
“Bitcoin compares with 130% for Amazon on a similar measure, but that took about 25 years. Heading back towards $10,000 would still maintain Bitcoin’s unprecedented performance,” he said.
‘It Went Up, So Will Keep Going Up’ Risks in Bitcoin –
The lessons of high-performing, widely hyped assets show price reversion may be the greater risk once the masses jump on board. #Bitcoin at about $26,000 on Aug. 28 is slightly below the end of 2020, similar to… pic.twitter.com/3UdAbpLNLe
— Mike McGlone (@mikemcglone11) August 28, 2023
Bitcoin is known for wild price swings since digital currencies are emerging assets, and volatility comes with the territory. With a current market cap of $506 billion, BTC has a 48.3% dominance in the crypto market.
BTC price fails to reclaim $26,000 | Source: BTCUSD on Tradingview.com
Bitcoin is currently trading at $26,000 after the cryptocurrency climbed over $30,000 earlier this year but fears have pushed the price back down to its current level. At its current levels, however, BTC is up more than 30.75% from the same period last year, showing a better price sentiment than in 2022.
While BTC could definitely fall further below $26,000, a fall toward $10,000 is highly unlikely as many things would have to go wrong for BTC to reach $10,000.
BTC is also gaining more mainstream traction from institutions, especially with current spot Bitcoin ETF filings. As a result, there is a greater possibility of Bitcoin’s price increasing than decreasing in the coming months.
This is not the first time $10,000 price predictions have come in regarding BTC. Late last year, Mark Mobius, founder of Mobius Capital predicted Bitcoin might drop to $10,000 in the short term.
On the other hand, there have been some optimistic forecasts made recently. Tom Fundstrat, one of the co-founders of Fundstrat, believes the price of BTC could reach $150,000 or maybe even further by the end of next year.
Featured image from iStock, chart from Tradingview.com