Potential Bitcoin price drop to $10,000 is a legitimate concern, according to Mike McGlone's stern advisory

In a recent development, two prominent figures in the financial world, Tim Draper and Mike McGlone, have offered contrasting views on the future of Bitcoin.

Tim Draper, a renowned venture capitalist, believes that institutional FOMO (fear of missing out) is driving the price increase of Bitcoin. He goes as far as to say that it is becoming irresponsible not to own Bitcoin, and he has reiterated his forecast that Bitcoin will reach $250,000 by the end of 2025.

However, Mike McGlone, senior commodity strategist at Bloomberg, has issued a warning that contradicts Draper's optimistic outlook. McGlone argues that Bitcoin is currently overextended relative to gold and equities, suggesting a bubble-like formation could be forming. This assertion is based on a "key risk-asset leading indicator" and is supported by a chart comparing the prices of Bitcoin, gold, and the S&P 500 index.

The chart, which McGlone shared in a tweet, suggests a potential overextension of Bitcoin relative to gold and equities. This overextension, according to McGlone, implies a potential correction in Bitcoin's price, with a possible drop back to the $10,000 level.

McGlone's warning is not just based on speculation. Over the past two years, he has observed institutional investors such as hedge funds, family offices, and publicly traded companies attempting to add Bitcoin to their balance sheets. However, he believes that Bitcoin's current price may be unsustainable given its relationship with gold and equities.

Despite McGlone's warning, Draper remains bullish on Bitcoin. He states that many companies, who previously laughed at the idea of Bitcoin, are now scrambling to accumulate as much Bitcoin as they can and put it on their balance sheet. This contradicts McGlone's warning of a potential correction, with Draper predicting a continued rise in Bitcoin's price.

In conclusion, while Draper sees a bright future for Bitcoin, with prices potentially reaching $250,000 by 2025, McGlone warns of a potential correction due to Bitcoin's overextension relative to gold and equities. The conflicting views highlight the ongoing debate about the future of Bitcoin and its role in the global financial market.