The fallout from the catastrophic collapse of FTX will be broader than the cryptocurrency markets, accelerating downward moves in stock and commodity markets, according to Mike McGlone, senior Marco analyst at Bloomberg.
“Bitcoin has been one of the leading indicators on the way up, and it’s a leading indicator on the way down. It just broke, so expect most of the dominoes to fall,” McGlone noted in a recent interview with Cointelegraph.
McGlone expects traditional stocks to continue to decline as the Federal Reserve continues to raise interest rates in an effort to curb inflation. According to the analyst, the FTX crisis will also accelerate the decline in commodity prices as the global economy enters a recession.
The FTX shock is likely to push bitcoin prices to new lows, according to McGlone. “I am afraid that Bitcoin will go to the $10,000 to $12,000 area,” he believes.
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