Bitcoin Price Forecast: BTC USD Could Fall to $10,000
The warning comes after the leading cryptocurrency has already fallen by about 20% in the past two weeks, trading at $76,500, and is now down about 40% from its all-time high set in October.
Mike McGlone warns that 2026 could reflect a 2008-style financial crisis
McGlone wrote on LinkedIn: “A delight for traders, 2026 will be reminiscent of 2008, 2000-1,” suggesting that the coming year could resemble previous periods of extreme market turbulence, cited by Yahoo Finance.
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Kevin Warsh’s nomination to the Federal Reserve sparks risk-off sentiment across markets
The gloomy forecast coincides with a broad asset sell-off sparked by US President Donald Trump’s nomination of Kevin Warsh to head the Federal Reserve. Warsh, widely considered a hawk, has criticized the Federal Reserve’s loose monetary policies and is seen as someone who would aggressively fight inflation. He previously supported Federal Reserve intervention during the 2008 financial crisis but advocated for a quick reversal, signaling a more cautious monetary approach, according to the Yahoo Finance report.
Microsoft loses $357 billion in one of the largest single-day sell-offs
The markets reacted violently to the news. Microsoft’s value alone fell $357 billion in a single session, marking the second-largest single-day selloff in the company’s history.
Total Crypto Market Cap Falls Below $2.7 Trillion
Cryptocurrencies collectively fell below $2.7 trillion on Monday, down nearly 40% from their 2025 highs. Gold and silver, traditional safe-haven assets, also plunged 5% and 7%, respectively. US stock futures fell as investors weighed the implications of a hawkish Fed. Also Read: PayPal (PYPL) Stock Plunges 17% After Weak Q4 Earnings: Enrique Lores to Replace Alex Chriss as CEO
Why the Fed’s hawkish outlook is putting pressure on Bitcoin and crypto assets
Tighter monetary policy means slower or smaller interest rate cuts, limiting the amount of money available to boost the prices of assets like Bitcoin, stocks and gold. However, Warsh still needs Senate confirmation and any change in interest rates would require the consensus of other Federal Reserve governors.
McGlone noted that “metals have peaked, thanks to cryptocurrencies in 2025, including gold,” cited by Yahoo Finance.
Geopolitical tensions and tariff threats increase market volatility
Geopolitical tension is added to market uncertainty. Ed Yardeni, president of Yardeni Research, highlighted the “peak of geopolitical intrigue,” referencing heated exchanges between Trump and Iran’s supreme leader, Ayatollah Ali Khamenei, over the country’s nuclear program and the treatment of protesters.
Yardeni said: “The Trump White House kept everyone on their toes, hinting at military action in Iran and threatening new tariffs,” quoted by Yahoo Finance.
In January, the United States also deployed the aircraft carrier USS Abraham Lincoln and other warships to the Arabian Sea. The Trump administration has hinted at possible military action in Iran and threatened new tariffs, further unnerving investors.
Frequently asked questions
Why does Kevin Warsh’s nomination to the Fed affect Bitcoin?
Warsh is seen as a tough choice who favors tighter monetary policy, which can hurt assets like Bitcoin.
How much has Bitcoin already fallen?
Bitcoin has fallen about 20% over the past two weeks and is down about 40% from its October all-time high.
