BTC plunges to seven-day bottom amid oil crisis while Bloomberg expert hints at $10K possibility
A Bloomberg analyst warns Bitcoin could plummet back to $10,000 levels per BTC while oil volatility continues dragging cryptocurrency and equity markets downward.
Bitcoin (BTC) received a cautionary $10,000 price forecast as equity markets experienced renewed losses driven by concerns over petroleum supply disruptions during Thursday's commencement of Wall Street trading.
Key points:
- New analysis suggests BTC prices could retreat to $10,000 levels as the cryptocurrency battles to maintain current positions.
- Both Bitcoin and American equities experience additional losses while markets reduce expectations for the Strait of Hormuz situation returning to "normal" conditions.
- Crude oil surges to $114 per barrel during a turbulent start to the Wall Street session.
BTC value "may be reverting" toward $10,000 level
According to data obtained from TradingView, BTC price movements showed a descent beneath the $66,000 threshold, establishing new lows for the current week.
The leading cryptocurrency remained subject to cautionary statements from market observers regarding both near-term and longer-term price trajectories.
During his most recent market commentary, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, projected that $10,000 could potentially re-emerge as a significant level for BTC/USD.
"Before the biggest money pump in history in 2020-21, Bitcoin hovered around $10,000, and it may be reverting," he wrote in a summary on X.
According to McGlone's assessment, the $10,000 threshold held special significance as the price level when Bitcoin futures markets initially launched trading nearly ten years earlier.
Meanwhile, figures from CoinGlass indicated that cryptocurrency liquidations throughout a 24-hour period exceeded $400 million on Thursday.
Crude oil spikes amid supply concerns while Bitcoin declines
American stock markets experienced substantial downward pressure at the market open, with the Nasdaq Composite Index posting losses exceeding 2% at the time of writing.
The precious metal gold experienced a minor recovery following its earlier decline, as concerns over petroleum supplies flowing through the Strait of Hormuz dominated market attention. WTI crude experienced a sharp increase to $114 per barrel at the commencement of the US trading session.
In response to these developments, trading resource The Kobeissi Letter projected that US inflation might reach 3.6% should current price levels persist for a two-month period.
"This would put US inflation at its highest level since September 2023," it wrote on X.
The forecasting platform Kalshi displayed decreasing probability estimates for petroleum traffic through the strait returning to "normal" levels during the current year.
The market turbulence occurred as trading venues reopened following a national address delivered by US President Donald Trump. According to Cointelegraph reporting, markets reacted negatively to the speech as Trump refrained from making crucial deescalation commitments.
Adam Kobeissi, founder of Kobeissi, characterized the presidential address as the "most puzzling part of the Iran War yet."
"It began with Iran's President stating they have 'no enmity' towards Americans and ended with President Trump escalating the Iran War, the exact opposite of what we have seen over the last 2 weeks from both sides," he told X followers.
"It simply does not add up."