According to Mike McGlone, senior commodities strategist at Bloomberg, the collapse of Sam Bankman-Freed’s crypto empire is likely to have repercussions outside of crypto markets.
According to Bloomberg Senior Marketing Analyst Mike McGlone, the impact of FTX’s catastrophic drop will be wider than in crypto markets as it will accelerate the decline in stocks and commodities markets.
“Bitcoin has been one of the leading indicators of an uptrend and one of the leading indicators of a downtrend. And it just broke, so expect most of the dominoes to fall,” McGlone said in a recent interview with Cointelegraph.
McGlone expects traditional stocks to continue to decline as the Federal Reserve continues to raise interest rates to curb inflation. According to the analyst, the FTX crisis will accelerate the decline in commodity prices as the global economy enters a recession.
According to McGlone, the shock from FTX is likely to send bitcoin prices down to new lows. “I’m afraid that bitcoin could enter the $10,000 to $12,000 zone,” he thinks.
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