The repercussions from the cataclysmic FTX downfall will be broader compared to crypto markets, because they will accelerate downward moves in stocks and commodity markets, based on Mike McGlone, senior marco analyst at Bloomberg.
“Bitcoin continues to be one of the main indicators in route up, and it is a number one indicator in route lower. And it is just damaged lower, so expect most dominoes to fall,” McGlone stated inside a recent interview with Cointelegraph.
McGlone expects traditional stocks to carry on falling because the Fed keeps raising rates of interest so that they can curb inflation. Based on the analyst, the FTX crisis may also accelerate the loss of commodity prices because the world economy enters a time period of recession.
The FTX shock will probably send Bitcoin prices to new lows, based on McGlone. “I’m afraid Bitcoin might mind towards the $10,000 to $12,000 area,” he believes.