Bitcoin News Today: Bitcoin's Euphoria Masked Weakness—90% Crash Fears Rise

A prominent crypto analyst has issued a stark warning that Bitcoin could face a potential 90% price crash, drawing on historical market behavior and current volatility indicators. Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, expressed concerns during an interview, suggesting that the cryptocurrency might revert to levels not seen in years, potentially falling back to $10,000 in this market cycle. His assessment is grounded in the argument that Bitcoin’s surge to $100,000 in December 2024 signaled market overheating rather than long-term strength, a classic pattern where euphoria precedes correction [7].

McGlone’s bearish outlook is further reinforced by Bitcoin’s growing correlation with broader equity markets, currently at 0.6 over 48 months. This suggests that Bitcoin is increasingly behaving as a "risk-on" asset, closely tied to stock market performance rather than acting as a standalone store of value. The strategist highlighted that since reaching the $100,000 milestone, gold has gained approximately 30%, while Bitcoin has only added about 8%, underscoring a relative loss of momentum. This trend, combined with rising volatility and a shifting market sentiment, points toward a possible correction phase [7].

Historical market data from Glassnode also supports the narrative of a cooling market, with Bitcoin currently at 90% of its supply in profit, a level often seen following euphoric peaks. This threshold has historically acted as a consolidation corridor, leading to choppy sideways trading before a new leg higher can begin. The firm noted that a sustained recovery above $114,000–$116,000, where over 75% of short-term holder supply would return to profit, could attract new demand and fuel another upward trend. However, breaking below $104,100 could rekindle the post-all-time high exhaustion seen earlier in the cycle [1].

The price action this week has also shown resistance at the $112,000 level, with bears aggressively defending this zone. This key level coincides with the 100-day and 50-day simple moving averages, suggesting that bulls must convert this resistance into support to confirm the end of the correction phase. Otherwise, further downside could be expected in the short term [1]. Additionally, Bitfinex analysts have noted that if Bitcoin fails its current short-term holder realized price near $108,900, it could open the door to a deeper retracement, with a supply cluster between $93,000 and $95,000 potentially offering a durable floor [2].

The broader financial landscape adds further context to these developments. Gold, often viewed as a traditional safe-haven asset, has been outperforming Bitcoin, reaching record highs as central bank buying and macroeconomic uncertainty drive demand. Meanwhile, Bitcoin’s recent performance, while still robust compared to other cryptocurrencies, has shown signs of divergence from equities and a closer alignment with gold. This shift raises questions about Bitcoin’s role as a digital store of value, especially as market participants reassess risk exposure and portfolio diversification strategies [5].

As the market navigates this complex dynamic, investors are advised to remain cautious. Analysts stress the importance of monitoring key price levels, supply zones, and macroeconomic indicators to make informed decisions. While a 90% crash remains a possibility, it is not a certainty, and sustained strength above $114,000 could signal renewed bullish momentum. In the meantime, Bitcoin’s future will depend on its ability to decouple from traditional markets and establish itself as a unique asset class with its own valuation logic.

Source: [1] Bitcoin's 'euphoric phase' cools as $112K becomes key ... (https://cointelegraph.com/news/bitcoin-euphoric-phase-cools-112k-key-btc-price-level) [2] Bitcoin Price News: BTC Slips Below $110K (https://www.coindesk.com/markets/2025/09/04/bitcoin-slips-below-usd110k-as-analysts-weigh-risk-of-deeper-pullback) [7] Crypto Analyst Warns 90% Bitcoin Price Crash Is Coming, ... (https://www.mitrade.com/insights/news/live-news/article-3-1097005-20250905)