Bloomberg’s senior commodity strategist Mike McGlone, a great correction in the US markets; He argued that it could affect a large class of assets from stocks to crypto currencies, from oil to bonds. McGlone pointed out that the existing economic indicators have reached the rates that have caused serious collapse in the past, and that this is a strong warning signal for investors. Bitcoin, especially with S&P 500, gold and GDP rates, is expected to have potentially a serious decline. Analyst said that an inevitable reaction in the markets will come to the agenda if certain policies are ineffective thanks to the “self -corrective mechanism of the US economy.
Economic Indicators Alarm
In McGLone’s analysis, it was emphasized that market rates reached historical peaks and that these levels were similar to the 1930 great crisis, the Dot-Com the balloon in the early 2000s and the situations in the 2008 global financial crisis. In particular, the S&P 500 reaches quite high values compared to both GDP and gold prices, indicating a “irregular olu market structure according to the analyst. It is recalled that such indicators were seen in the previous crisis periods and that investors should closely follow these rates.
According to McGLone, if the natural balancing process of the markets is interrupted and the existing inflation or austerity measures are insufficient, there may be decreases up to 50 %in the US stock market indices. In addition, oil prices are expected to decrease to 40 dollars, copper to $ 3 and ten -year bond returns to 3 %. In this scenario, the price of Bitcoin is expected to fall to $ 10,000. Gold may remain more stable, unlike other existence classes.
Warning time for crypto currency investors
According to McGlone’s statements, especially risky assets such as Bitcoin are likely to be affected by such corrections. Bitcoin, which is currently traded above $ 87,000, is thought to be faced with a serious retreat due to the breakage of the general economic structure. Past examples show that the increasing correlation between the crypto currency market and the traditional market has become more prominent in such scenarios.
The losses in more than one asset class at the same time have serious risks for investors with a portfolio variety. For this reason, analysts say that investors should pay attention not only to price movements, but also to unusual structures in market rates. It is important to revise risk management strategies and to evaluate investment decisions in a wide perspective rather than short -term reactions.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
