Bitcoin Faces 88% Plunge as Investors Favor Gold

Senior analyst Mike McGlone has issued a stark warning to investors, suggesting that Bitcoin (BTC) could plummet by nearly 90% from its current price. This dramatic prediction is based on the current conditions of the gold and stock markets, which McGlone believes could significantly impact the value of the leading cryptocurrency.

McGlone, who has a substantial following on the social media platform X, shared his insights with his followers. He posits that Bitcoin could drop to as low as $10,000 as traders increasingly favor gold over the digital asset. This shift in investor preference is evident in the performance of gold, which has outperformed Bitcoin thus far in 2025. McGlone notes that gold has seen a 15% increase, while Bitcoin has experienced a similar decline. He suggests that a 6% drop in the S&P 500 could further exacerbate this trend, indicating a broader shift in risk appetites.

The analyst's concerns are rooted in several key factors. Firstly, the launch of the biggest exchange-traded fund (ETF) in history and the shift in President Donald Trump's stance towards highly volatile and speculative cryptocurrencies could signal a peak in the crypto bubble, reminiscent of the market conditions from about 25 years ago. Secondly, the data from ETFs shows a clear shift in investor sentiment, with gold ETFs experiencing inflows after four years of outflows. This trend suggests that investors are becoming more risk-averse and are moving their assets towards safer havens like gold.

McGlone's warning comes at a time when Bitcoin is trading at approximately $84,899, representing a fractional increase on the day. A drop to McGlone's predicted level of $10,000 would constitute an 88% decline for the cryptocurrency, underscoring the potential severity of the market correction. The analyst's insights highlight the volatile nature of the crypto market and the importance of staying informed about broader economic trends that could impact digital assets.