Bloomberg Strategist: "Virtual Assets Will Halve Before Real Buying Opportunity Arrives"

▲ Virtual asset trading

A forecast has emerged suggesting that a true buying opportunity in the virtual asset market will only appear after an additional 50% crash from its 2025 peak.

According to cryptocurrency specialized media Bitcoin.com on April 27 (local time), Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, diagnosed that the virtual asset market needs a 'buy the dip' cure. McGlone warned that the Bloomberg Galaxy Crypto Index could fall by another 50% from its current level. He analyzed that the best time to buy virtual assets would be when the index drops to around 1,000 points.

He analyzed that the virtual asset market faces three problems: oversupply, excessive expectations, and high prices. He pointed out that since Bitcoin (BTC) was born in 2009, millions of cryptocurrencies have proliferated, leading to virtually unlimited supply. This is why the market cannot secure sustained upward momentum. McGlone predicted that Bitcoin's breakthrough to $100,000 in 2025 might be the last peak that will not be broken for some time.

McGlone noted that while the S&P 500, a representative index of the stock market, nearly doubled in the past five years, the virtual asset index remained stagnant. Virtual assets showed four times higher volatility than stocks but failed to prove their value as an asset in terms of returns. He criticized that while virtual assets show a high correlation with the Beta index, their ability to sustain gains is significantly low.

In particular, he put forward a radical forecast that the possibility of Bitcoin returning to the $10,000 level cannot be ruled out. He warned that the virtual asset market might be in the early stages of a bubble collapse. He criticized the reality that most cryptocurrencies form market capitalizations of billions of dollars without real value. If the stock market turns bearish, the downward pressure on Bitcoin is expected to intensify.

Ultimately, this is a time for virtual asset investors to be patient. McGlone repeatedly emphasized the 'buy the dip' cure, stating that market performance can only improve when prices are sufficiently low. The downside risk indicated by the metrics is still ongoing. Investors should maintain a conservative outlook until the market finds its bottom and improves its fundamentals, rather than being misled by short-term rebounds.

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