According to Mike McGlone, senior commodity strategist at Bloomberg, falling Bitcoin and crude oil prices could be a sign of deflation.
McGlone has predicted that oil prices could potentially reach $60 per barrel in the U.S.
Deflation is a decrease in prices driven by low demand and waning economic momentum.
McGlone has predicted that the S&P 500 index might also potentially drop to its 200-day moving average since he believes that it might be overdue for a correction.
The S&P 500 has suffered its worst sell-off of the year so far, plunging by nearly 2% during the Tuesday trading session. The index is down by nearly 5% over the past month.
Bitcoin is currently trading at $81,812 after plunging by more than 10% over the past 24 hours alone. Despite being named as part of the much-talked-about cryptocurrency reserve, Solana (SOL) has also plunged by a whopping 16%.
Roughly $1 billion worth of crypto has been liquidated over the past 24 hours, according to CoinGlass data.
Meanwhile, gold, the go-to \"safe haven\" asset for investors could potentially surge to $3,000 amid economic turmoil, according to McGlone.
Earlier this week, McGlone predicted that Bitcoin might struggle to find a floor against gold \"until around 21x\" due to various headwinds for risk assets.
The US economy is currently experiencing a very sharp slowdown, with some analysts predicting a recession. The Atlanta Fed\'s GDPNow model, a real-time economic indicator, shows that the U.S. economy is on track to shrink by almost 3% in the first quarter of the year.