Bloomberg Intelligence has issued a major Bitcoin sell signal after the crypto market’s performance diverged from the S&P 500’s recent record highs. Senior strategist Mike McGlone suggests a broader deflation in digital assets could potentially drive Bitcoin toward its long-term average near $10,000. However, substantial demand for spot Bitcoin ETFs and rising institutional ownership remain key counterarguments against a severe decline.
A new Bitcoin sell signal from Bloomberg Intelligence has reignited debate over the cryptocurrency’s future following an unusual market divergence. The warning came after the S&P 500 surged while the crypto market moved sharply lower at the end of May 2026.
Senior commodity strategist Mike McGlone believes this marks the beginning of a broader bubble-deflation process. He argues that Bitcoin sell signal faces a much tougher landscape today as it competes with millions of other digital tokens for capital.
The situation became more serious when the Bloomberg Galaxy Crypto Index fell below 2,000 points. This index has now lost roughly half its value from a 2025 peak, which McGlone compares to the 2018 bear market.
Critics point out that McGlone has previously predicted major declines that never materialized. They argue today’s market structure is fundamentally different due to institutional adoption.
The strongest counterargument centers on spot Bitcoin ETFs from firms like BlackRock and Fidelity. Many analysts believe these funds provide a strong price floor that did not exist in previous cycles.
McGlone has acknowledged a possible recovery path, identifying $75,000 as a key level to watch. A sustained move above that mark would invalidate the bearish thesis.
Supporters also note that weakness in the broader crypto market does not always mean weakness for Bitcoin itself. During uncertainty, Bitcoin’s market dominance often rises as investors move away from speculative altcoins.
