Analysts at Bloomberg Intelligence warn of a potential collapse in the price of Bitcoin. They predict it could dip to $10,000 by 2026, marking nearly a 90% decline from current levels. Mike McGlone, a senior commodity strategist, believes this scenario could lead to a contraction in the cryptocurrency market, shrinking it from $3 trillion to $300 billion. He attributes this decline to “post-inflation deflation” and an inevitable crash of highly speculative assets, most of which lack intrinsic value.

McGlone draws a troubling parallel to the stock market of 2007, when equities reached record highs, the Federal Reserve cut interest rates, and the market subsequently plummeted by 50%, triggering the financial crisis of 2008. He cautions that Bitcoin could mirror that scenario, noting that the cryptocurrency has already lost about 25% of its value since the Federal Reserve’s rate cut in September.

Since reaching a peak of $126,000 in October, Bitcoin has fallen by more than 30%. David Morrison of Trade Nation adds that the market is “running out of steam” and could break through recent lows, potentially falling to $80,000. These forecasts reflect growing concerns over the overvaluation of cryptocurrencies and their vulnerability to shifts in the macroeconomic landscape.