The cryptocurrency sector is currently experiencing turbulence due to Bitcoin’s (BTC) recent decline and the uncertainty stemming from macroeconomic indicators.
During a discussion on the Wolf Of All Streets podcast, host Scott Melker and Bloomberg’s senior strategist Mike McGlone delved into the market’s potential “bottom” and shared their forecasts for 2026.
A key topic of conversation was the latest US Consumer Price Index (CPI) data, which revealed a drop to 2.6%. Mike McGlone from Bloomberg speculated that these statistics might have been manipulated, attributing the downward trend in inflation to decreased consumer demand. In contrast, Scott Melker criticized the government’s data collection methods as “absurd,” contending that everyday consumers were not perceiving any significant price reductions in their lives. He also suggested that this could be paving the way for possible interest rate cuts in January.
Mike McGlone offered a rather bleak outlook for cryptocurrencies. Drawing parallels between today’s conditions and historical events like the Great Depression of 1929 and Japan’s market crash in 1989, he warned that Bitcoin could plummet to around $50,000. He anticipates a drastic correction of up to 90%, potentially driving many altcoins down to zero value. According to him, we are currently witnessing a “pump and dump” scenario where dependence on stock markets heightens risks.
On a more optimistic note regarding short-term trends, Scott Melker indicated that Bitcoin is fluctuating within a range of $85,000 to $90,000. He believes that previous peak levels between $69,000-$74,000 may serve as robust support; however, falling below this threshold would represent an acceptable margin of error.
*This content does not constitute investment advice.