Bloomberg Expert Predicts Dark Economic Outlook and Challenges for Crypto



  • Bloomberg Senior Commodity Strategist Mike McGlone is warning that the US economy is tipping into a severe recession, supported by several worrying indicators.
  • McGlone projects a challenging future for cryptocurrencies, especially altcoins, and anticipates a sharp market correction that could wipe out most existing cryptocurrencies.
  • Although the Federal Reserve is expected to implement monetary easing measures, the strategist views a significant recovery as unlikely, and in the event of a stock market crash, he does not expect Bitcoin to outperform other assets.

In recent months, the probability of a recession in the US economy has increased, coinciding with the efforts of the Federal Reserve to face the challenge of containing inflation.

Amid growing concerns, Mike McGlone, Bloomberg’s chief commodity strategist, has said that all indicators point to an inevitable recession on the horizon.

According to McGlone, the economy is “leaning” toward a recession, pointing to factors such as the Federal Reserve’s tightening policies, evidenced by rising interest rates. During an interview with Blockworks Macro on May 17, he stated: “We are tipping into a severe recession that hasn’t even started, and all the indications right now are spot on… I don’t see anything on the near radar that could stop this downward trajectory. at the moment”.

The strategist cited some indicators that support this outlook, such as a possible earnings squeeze, stagnant market performance, declining prices for natural gas and copper, and record-low unemployment rates.

Despite expectations of a recovery once the Federal Reserve implements monetary easing measures in response to its tightening policies, McGlone predicts that such a reversal is unlikely by historical standards. In fact, he projects a challenging future for most investment products, such as cryptocurrencies and stocks.

As for cryptocurrencies, McGlone anticipates a difficult phase for altcoins, anticipating a significant correction as the stock market goes on a downward trajectory.

The strategist also offered his perspectives on Bitcoin (BTC), suggesting that it is about to set a new bear market low during this period of market turbulence. Interestingly, he expects a market crash that will likely wipe out most cryptocurrencies.

“My base case is that the S&P 500 index will go down to 3,000, Bitcoin will also go down, I don’t know how far. It could set a new low… Cryptocurrencies will take a sharp drop. We are going to remove some of these 24,000 cryptocurrencies. Get rid of some. They are just absurd. But Bitcoin and Ethereum will pull through,” he commented.

McGlone argues that despite a stock market crash, Bitcoin is unlikely to outperform other assets.

“If the stock market doesn’t crash, I don’t expect Bitcoin to outperform in that case. So there is kind of a win-win situation,” he stated.

In conclusion, Mike McGlone, Bloomberg strategist, warns of the growing probability of a recession in the US economy. According to his analysis, several indicators point to a downward trajectory, including tightening by the Federal Reserve, declining earnings, weak market performance and declining prices for natural gas and copper. McGlone also envisions a challenging scenario for cryptocurrencies, especially altcoins, and suggests that Bitcoin could set a new bear market low.