Potential US Debt Default Could Crush Crypto and Stock Markets, Warns Bloomberg Strategist
Bloomberg Intelligence’s senior commodities analyst Mike McGlone believes that danger property will probably be worse off if the US defaults on its debt.
McGlone says in a brand new Wolf of All Streets roundtable dialogue that he’s bearish on crypto property and shares whereas bullish on gold amid negotiations to boost the US debt ceiling earlier than the June 1st deadline.
“The factor I’m involved about is the statements I used to be listening to when doing my analysis this weekend and also you hear the Treasury Secretary [Janet] Yellen saying the phrase ‘default’…
It retains me very bullish on issues like gold, very, very bearish issues just like the inventory market and broad cryptos as a result of I don’t suppose that is going to come back to an settlement till markets make that.
And it’s simply what occurred in 2011, they dropped the inventory market down laborious. They are going to agree as a result of they notice, ‘we’re going to crash the worldwide economic system, we are going to meet within the center’.”
In line with the Bloomberg strategist, danger property are more likely to rally as soon as an settlement on elevating the US debt ceiling is reached.
“What’s the very best case is we get up one morning, they’ve an settlement. Within the morning of an settlement, what do you have got? A danger asset rally.
All the pieces will pop up, Bitcoin most likely essentially the most.”
McGlone says that the more than likely consequence is that the market’s response to a possible US debt default will power the debt ceiling to be raised.
“I feel the extra doubtless situation is the markets make them come to an settlement.”
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