Predicted Substantial, Historically Typical Declines for Bitcoin, Oil, and Stock Market by Bloomberg Analyst

Revamped Daily Hodl Article

Hey there, crypto enthusiasts! Let's dive into today's intriguing analysis from Mike McGlone, Bloombberg's senior commodity strategist. He's shared some bold predictions about the potential impact of a massive market correction on Bitcoin (BTC), oil, stocks, and more!

Bloomberg's Mike McGlone raises concerns about an upcoming market correction in the US, which could plunge Bitcoin prices, oil, stocks and more. The analyst took to social media platform X to voice his concerns, highlighting the U.S.'s "self-correcting mechanism" that may push back against President Trump’s tariff war, leading to possible market chaos.

McGlone points to two key charts to support his claims:

The S&P 500 vs GDP ratio - Over the years, high levels of this ratio have historically been associated with stock market crashes such as the 1930s, late 1990s, and 2008.
The S&P 500 vs Gold ratio - Also at elevated levels, this indicates an increased likelihood of a market correction.

A potential market reversion, as per McGlone, could trigger significant drops in stocks, oil, copper, and bonds, with Bitcoin possibly plummeting to as low as $10,000, marking a 90% drawdown. Gold, however, may buck the trend due to its status as a traditional safe haven.

McGlone's predictions may seem severe, but he argues that the magnitude of the potential downturn is normal when viewed through a historical lens. At the time of writing, Bitcoin is trading at $87,529.

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Now that you've caught the gist of McGlone's warnings, let's dive into the impact that his predictions could have on several assets:

Bitcoin (BTC): McGlone predicts a possible 90% drop in Bitcoin's price, signaling a return to pre-2020 levels. This "digital gold" would face a severe stress test as its reputation as a safe haven is challenged.
Oil (Crude): McGlone sees a pit stop for crude oil prices at around $40 per barrel, attributed to dwindling global demand and economic activity.
Stocks (Equities): McGlone expects a 50% correction in the US equities market, indicating a long overdue market reset.
Copper: McGlone warns of a copper price downturn, with a predicted low of $3 per pound.
Gold: In contrast to riskier assets like Bitcoin and stocks, McGlone foresees gold as a safe haven during market turbulence, potential rising towards $4,000 per ounce.

If McGlone's forecasts hold true, crypto experts like us (The Daily Hodl) should brace for some tumultuous times ahead! Stay informed, stay safe, and don't forget to subscribe for email alerts!

```Cover Image: Courtesy of Midjourney

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Enrichment Data:- Impact on Key Assets - Bitcoin: A potential 90% drop in Bitcoin's price, a return to pre-2020 levels. - Oil (Crude): A predicted low of $40 per barrel. - Stocks (Equities): A expected 50% correction in the US stock market. - Copper: A price drop to $3 per pound. - Gold: Golden gains, potentially rising towards $4,000 per ounce.```

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Predicted Substantial, Historically Typical Declines for Bitcoin, Oil, and Stock Market by Bloomberg Analyst