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

▲ Virtual Asset Trading

A projection has been made that a true buying opportunity in the virtual asset market will only emerge after a further 50% crash from its 2025 peak.

According to crypto media Bitcoin.com on April 27 (local time), Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, diagnosed that the virtual asset market is in need of 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 could 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 maintain gains is significantly lower.

He even offered a radical outlook 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 burst. He criticized the reality that most cryptocurrencies form billions of dollars in market capitalization without real value. If the stock market turns bearish, the downward pressure on Bitcoin is expected to intensify.

Ultimately, this is a time for patience for virtual asset investors. 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 stance until the market confirms a bottom and improves its fundamentals, rather than being fooled by short-term rebounds.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*