The senior commodity strategist at Bloomberg, Mike McGlone, believes that falling Bitcoin and crude oil prices could indicate deflation. He predicts that oil prices in the U.S. could potentially reach $60 per barrel. Deflation is characterized by a decrease in prices due to low demand and a slowdown in the economy. McGlone also suggests that the S&P 500 index might drop to its 200-day moving average, indicating a potential correction. The S&P 500 has experienced significant selling, with a nearly 2% drop in Tuesday's trading session and a 5% decline over the past month. Bitcoin has seen a 10% decline in the past 24 hours, while Solana (SOL) has plunged by 16%. Approximately $1 billion worth of crypto has been liquidated in the past day. McGlone also predicts that gold, considered a safe haven asset for investors, could surge to $3,000 amid economic turmoil. The U.S. economy is facing a sharp slowdown, with analysts even predicting a recession, as the Atlanta Fed's GDPNow model indicates a potential 3% contraction in the first quarter of the year.



Other News from Today