Bitcoin may revisit the $10,000 level, according to Bloomberg Intelligence strategist Mike McGlone. He links the risk to fading demand drivers and reduced buying capacity. His view centers on capital timing, ownership concentration, and the absence of steady replacement demand at current prices.
In an X post, McGlone says Bitcoin’s major price advances have followed clear accumulation phases. Large buyers entered early and absorbed available supply. That process lifted prices without requiring constant inflows from new participants. Once those phases ended, price support weakened.
Bitcoin’s 2020 Rally Was Demand-Driven
McGlone noted that Bitcoin was last at the $10,000 range in 2020. That was when heavy corporate buying began. Michael Saylor and a handful of companies were buying Bitcoin Their buying diminished the availability of funds at that moment and contributed to a broader rise in prices.
The higher it went, the more late buyers popped up. These people bought at even higher levels. The activity of these participants was reversed with price momentum as opposed to creating fresh demand. The rally went on as the selling pressure was light then.
A second bump followed the approval of spot Bitcoin exchange-traded funds. Those products helped traditional investors gain access. Significant sums of capital came through regulated means. According to McGlone, the inflow achieved its goal of supporting higher prices.
That support has since weakened. The pace of inflows has waned following the initial rush. And corporate balance sheet growth came to a standstill as well. The early holders still control a large percentage of the Bitcoin supply. A lot of them have big unrealized profits and that can turn into selling in a market panic.
Market Structure Signals a Potential BTC Reset
McGlone also cites structural shifts in the crypto market. About 28 million cryptocurrencies are now tracked by CoinMarketCap. Bitcoin once stood alone. Capital allocation is now fragmented. Funds dispersed over thousands of assets rather than consolidated in Bitcoin.
The strategist sizes this environment up to the equity markets pre-2007. Tightening conditions notwithstanding, prices stayed high. So when buyers run out of folks to replace in a selling position, declines ensue. Bitcoin now exhibits that same aspect, McGlone says.
Michael Saylor’s stance doesn’t alter that trajectory, McGlone said. Roughly 671,268 Bitcoin are held on the balance sheet of Michael Saylor’s Strategy. The average purchase price is close to $74,978. That capital has already been deployed and is unable to serve as a new base of buying support.
For his part, McGlone insists he’s not just being sentimental or ideological. It has to do with supply and demand and the timing of these capital flow. And in that context, he sees $10,000 as a possible reset level.