Bloomberg Strategist Warns of 2008-Style Market Unwind, Sees Bitcoin Plunging to $10,000
Financial markets are bracing for a potential storm as a key Bloomberg Intelligence strategist warns of a downturn reminiscent of the 2008 financial crisis, with a specific, dire forecast for Bitcoin.
Mike McGlone, senior macro strategist at Bloomberg Intelligence, projects the leading cryptocurrency could plummet a further 87% to around $10,000. This stark prediction follows Bitcoin's recent 20% slide over the past fortnight, leaving it trading near $76,500—a 40% drop from its October peak.
"For traders, 2026 is shaping up to echo the major dislocations of 2008 and 2000-2001," McGlone stated in a recent social media post, pointing to a confluence of tightening monetary policy and peak geopolitical risk.
The immediate catalyst for the market-wide rout appears to be President Donald Trump's nomination of Kevin Warsh to chair the Federal Reserve. Warsh, widely viewed as a monetary policy hawk focused on combating inflation, has been critical of the central bank's prolonged loose-money stance. While he supported Fed intervention during the 2008 crisis, he historically advocated for a swift withdrawal of stimulus.
This nomination marks a significant shift for Trump, who has long championed lower interest rates. A hawkish Fed leadership implies fewer and slower interest rate cuts, effectively draining liquidity from the financial system that has buoyed assets from tech stocks to gold and cryptocurrencies.
Markets reacted violently to the prospect. The global cryptocurrency market cap fell below $2.7 trillion this week, down nearly 40% from its peak. Traditional safe havens offered no shelter, with gold dropping 5% and silver 7%. U.S. stock futures also tumbled, exacerbated by a historic $357 billion single-session sell-off in Microsoft shares.
"Metals have peaked, following the path of cryptos in 2025," McGlone added, suggesting the sell-off has broader contours.
Ed Yardeni of Yardeni Research noted that monetary tightening is being compounded by "peak geopolitical intrigue." Tensions flared this weekend between President Trump and Iran's Supreme Leader, Ayatollah Ali Khamenei, over Iran's nuclear program and domestic crackdowns. The U.S. had already deployed the USS Abraham Lincoln carrier group to the region in January, keeping investors on edge.
Investors now face a critical week of data to gauge the Fed's next moves, including JOLTS job openings, ADP payrolls, and the pivotal January employment report. A flood of earnings from tech giants like Alphabet and Amazon, alongside reports from consumer-facing firms like Disney and PepsiCo, will test the resilience of both the AI trade and the broader economy.
Market Reactions & Analyst Commentary:
"McGlone's call is extreme, but it's a necessary counter-narrative to the relentless crypto hype," says David Chen, a portfolio manager at Horizon Capital. "It forces investors to consider macro liquidity, which is turning hostile. Warsh's nomination, if confirmed, fundamentally changes the game."
"This is pure fear-mongering," retorts Anya Sharma, a crypto venture partner. "Correlating Bitcoin's 4-year cycles with traditional market crashes is lazy analysis. The 2008 comparison is irresponsible—the underlying asset and market structure are completely different. This feels like an attempt to talk the market down."
"The real story is the regime change at the Fed," observes Marcus Wright, an independent economic historian. "Trump's pivot to Warsh suggests a priority shift towards strengthening the dollar and fighting inflation, even at the cost of asset prices. That's the seismic shift here, not any single price prediction."
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email him at [email protected].