According to Bloomberg's senior commodity strategist Mike McGlone, falling Bitcoin and oil prices could signal deflation.
Mike McGlone's Predictions
McGlone has predicted that oil prices could potentially reach $60 per barrel in the U.S. He also forecasts that the S&P 500 index might drop to its 200-day moving average due to an anticipated correction.
Current Financial Indexes Situation
The S&P 500 has suffered its worst sell-off of the year so far, plunging by nearly 2% during the Tuesday trading session. The index is down by nearly 5% over the past month. Bitcoin is currently trading at $81,812 after plunging by more than 10% over the past 24 hours alone. Solana (SOL) has also plunged by a whopping 16%.
Impact on the US Economy
According to CoinGlass data, roughly $1 billion worth of crypto has been liquidated over the past 24 hours. Meanwhile, gold, the safe haven asset for investors, could potentially surge to $3,000 amid economic turmoil, according to McGlone. The US economy is experiencing a sharp slowdown, with some analysts predicting a recession. The Atlanta Fed's GDPNow model shows a nearly 3% economic shrinkage in the first quarter.
The drop in commodity prices could indicate significant economic shifts, signaling potential deflation to investors and economists.
