Will the Bubble Burst if Bitcoin Falls Below $100,000? Critical Warning from Bloomberg! - Coin Bulletin

Bloomberg Intelligence's senior commodity strategist Mike McGlone emphasized the critical importance of Bitcoin staying above the $100,000 level.

McGlone noted that in the wake of Trump's re-election, the crypto world is dominated by a "price must go up or there's a problem" mentality. He stated that this situation means a serious test for Bitcoin and other risky assets.

McGlone said that if Bitcoin cannot maintain its current price level, market participants may perceive this asset as a bubble and this could lead to a reversal of the wind in risk assets. The strategist, who pointed out that gold could benefit from such uncertainties, commented, "The key question for 2025 is how much higher Bitcoin can rise above the $100,000 threshold. This could be advantageous for gold."

Bitcoin's strong performance compared to gold has become a topic of interest for investors since 2020. However, McGlone indicated that the price tension seen in the charts is approaching a breaking point, and the continued increase in Bitcoin's price will further push this tension. On the other hand, in the event of a price drop, it is predicted that negative effects on risk assets may be observed, and this could lead investors to safer haven assets, especially gold.

The expectation of Trump's re-election and adopting a friendly attitude towards cryptocurrency policies is seen as an important source of short-term optimism in the market. However, McGlone emphasized that Bitcoin needs to continue to take advantage of this momentum, otherwise the perception of risk assets may deteriorate.