Bitcoin downside risks have returned to the center of market discussion as traders assess whether a broader US-Iran conflict could trigger a deeper crypto selloff. The debate gained traction after Bloomberg Intelligence senior strategist Mike McGlone repeated his view that Bitcoin could revisit the $10,000 level, while separate research tied an extreme downside case to worsening geopolitical stress, tighter liquidity, and a sharper risk-off move across global markets.

McGlone’s latest outlook argues that Bitcoin still carries the risk of reverting to what he described as a longer-term “fundamental anchor” near $10,000. The thesis is based on regression analysis and the view that the large price expansion during 2020 and 2021 was driven by unusually loose monetary conditions. In that framework, the removal of excess liquidity leaves Bitcoin more exposed to a return toward earlier valuation ranges.

Source: X

His argument also draws a distinction between Bitcoin and the wider crypto market. According to the material provided, McGlone said the market is now crowded with millions of digital assets, while stablecoins remain the segment showing the clearest real-world utility. In the current macro environment, Bitcoin is competing with gold for capital as investors reassess risk exposure.

Geopolitics and Liquidity Stress Are Driving the Bear Case

The latest round of bearish projections has also been reinforced by war-related macro research. A report from XWIN Research Japan argued that President Donald Trump’s April 1 speech on Iran reset market expectations by reducing hopes for a near-term de-escalation. That report said the speech accelerated a broader repricing of risk assets, with oil rising sharply, the dollar strengthening, and volatility measures rising.

In that analysis, Bitcoin is treated not as a defensive asset but as one that remains highly sensitive to liquidity conditions. The report pointed to rising oil prices, tighter dollar liquidity, and widening Treasury market spreads as signs of a more fragile backdrop. It also focused on the structure of CME Bitcoin futures, saying open interest is concentrated in shorter-dated contracts and therefore vulnerable to liquidation pressure if the market comes under stress.

Source: CryptoQuant

Under its moderate scenario, XWIN Research said Bitcoin could fall from around $70,000 toward $50,000, a decline of roughly 25% to 30%. If exchange-traded fund outflows continue and spot demand remains weak, the report extended the downside toward the $20,000 to $30,000 range. In the most extreme case, tied to a prolonged closure of the Hormuz Strait or broader war escalation, the report said Bitcoin could fall toward $10,000.

That scenario is not presented as the base case, but it carries added weight in the market conversation because it links crypto's downside to broader macro stress rather than to crypto-specific weakness alone. The combination of higher energy costs, reduced liquidity, and forced unwinds in leveraged products is central to that view.

Polymarket Places $10k Crash at 5% Odds

Prediction market pricing described in the material provided suggests traders are leaning more heavily toward lower target zones than toward a collapse all the way to $10,000. According to those divs, the strongest probability on the board is around $55,000, with a 74% chance, up 17%. The $50,000 level stands at 62%, $45,000 at 49%, and $40,000 at 39%.

Source: Polymarket

Further down the range, market confidence drops more sharply. The $35,000 level stands at 27%, $30,000 at 17%, $25,000 at 12%, and $20,000 at 9%. At the bottom of the table, the $15,000 level carries a 7% probability, and $10,000 just 5%.

Those numbers show that while traders are assigning some chance to a full washout, the market is not treating it as the most likely path. Instead, current positioning suggests greater confidence that Bitcoin could revisit mid-range support zones without necessarily experiencing the deep capitulation outlined in the most bearish scenarios.