Veteran commodity strategist and Bloomberg analyst Mike McGlone says Bitcoin (CRYPTO: BTC) and broader crypto markets may still be far from a true bottom, warning that excessive speculation and stretched risk markets could trigger a deeper reset.

Bitcoin in “Purge Mode“

Speaking in a CoinTelegraph interview on June 2, McGlone argued Bitcoin remains stuck in a broader "purge mode," with the next major support zone likely around $50,000 before potentially falling toward $10,000 longer term.

He said Bitcoin is unlikely to hold above its 200-day moving average and warned that meme assets like Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) may need to "go to zero" before the crypto market fully resets.

The strategist also suggested Michael Saylor and Strategy (NASDAQ:MSTR) could face mounting pressure if market volatility rises further, adding that "Bitcoin needs pain" before a durable bottom forms.

Why McGlone Is Worried

McGlone pointed to several macro indicators that he believes signal elevated systemic risk:

  • U.S. stock market capitalization-to-GDP ratio reaching the highest level since 1928
  • Gold volatility surging above S&P 500 volatility
  • Bitcoin-to-gold ratio weakening sharply
  • Crypto persistently underperforming equities

He described Bitcoin as one of his "favorite leading indicators" for broader market stress since its launch during the 2009 financial crisis.

According to McGlone, crypto weakness while equities continue making highs is a major warning sign.

"Stocks have to go up and maybe Bitcoin won't go down," he said, describing crypto as increasingly dependent on equity market strength.

Image: Shutterstock