Bitcoin Plunges to Weekly Lows as $10K Bear Case Gains Traction Amid Oil Shock
Bitcoin (BTC) is catching heat from multiple angles. On Thursday, the crypto market took a fresh beating alongside US equities as oil-supply jitters rippled through Wall Street, with one prominent analyst now openly discussing a potential reversion to $10,000 BTC levels.
The $10K Warning
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, isn't mincing words. In his latest crypto analysis, McGlone flagged the possibility that Bitcoin "may be reverting" to $10,000—a level that carries historical weight in the market's collective memory.
"Before the biggest money pump in history in 2020-21, Bitcoin hovered around $10,000, and it may be reverting," McGlone wrote on X. His reasoning? The $10,000 mark holds particular significance as the price point where Bitcoin futures markets first launched nearly a decade ago. When major technical levels align with historical precedent, traders pay attention.
Price Action: Week-to-Date Lows Hit
The warning came as BTC/USD dipped below $66,000 to hit its lowest point for the week. Market intelligence from TradingView confirmed the downward momentum, with Bitcoin unable to hold ground as macro conditions deteriorated.
The pressure wasn't isolated to crypto. Over $400 million in crypto liquidations hit the market in just 24 hours, per CoinGlass data—a telltale sign of leveraged positions getting forcibly unwound across the sector.
Oil Spike Triggers Risk-Off Cascade
The catalyst? Oil concerns are dominating the macro narrative. WTI crude rocketed to $114 per barrel as the US trading session opened, driven by supply uncertainties through the Strait of Hormuz. That's the kind of move that sends shockwaves through everything correlated to inflation expectations.
The Nasdaq Composite Index crashed more than 2% at Thursday's open, dragging equities down with it. Bitcoin's correlation to US stocks meant BTC traders caught the same downdraft. Here's where it gets worse for inflation expectations: trading resource The Kobeissi Letter calculated that if oil prices sustain at current levels for two months, US inflation could spike to 3.6%—the highest reading since September 2023.
Prediction platform Kalshi showed the market is increasingly skeptical about oil traffic normalizing through the Strait of Hormuz anytime soon, with declining odds for a return to regular supply flows this year.
The Trump Wild Card
Alpha Take
We're watching a convergence of bearish signals here: technical resistance breaking down, oil creating inflation fears, macro risk-off sentiment, and geopolitical ambiguity—all hitting Bitcoin simultaneously. The $10,000 thesis isn't a certainty, but McGlone's framing it as a serious reversion target worth monitoring. In volatile crypto market conditions like these, knowing where major support zones sit is half the battle for portfolio protection.
Originally reported by
CoinTelegraph
Not financial advice. Crypto investing involves significant risk. Past performance does not guarantee future results. Always do your own research.