As the ongoing conflict in Iran continues and global energy resources face possible disruptions, it is anticipated that most financial assets will start behaving like risk assets, as discussed by Bloomberg Intelligence strategist Mike McGlone in an instructive recent interview with Cointelegraph.

Despite significant price fluctuations seen in the commodities market, stock market volatility has remained relatively subdued, which McGlone perceives as an unsustainable trend. Historically, such imbalances generally correct themselves through heightened volatility in equities, often during major market downturns.

The current unusual volatility dynamics are now impacting gold, a commodity typically regarded as a safe haven, with McGlone noting, “Currently, the 180-day volatility of gold is nearly 2.5 times that of the S&P 500. Hence, it is no longer a reliable store of value.”

McGlone also shares insights regarding Bitcoin (BTC) and the wider cryptocurrency market, suggesting they may serve as early indicators for conventional risk assets. With the Bloomberg Galaxy Crypto Index significantly down from its peak, this could signal an impending downturn in traditional markets. He compares the present macroeconomic environment to previous stress periods, notably the lead-up to the 2008 financial crisis when energy prices surged before sharply declining amid a global economic slowdown.

In addition, he provides his perspective on oil prices, interest rates, and the role of US Treasuries, which he still considers among the limited assets poised to gain from increased volatility and slower economic growth.

Could the ongoing oil crisis precipitate a broader market correction? What implications does it hold for Bitcoin, stock markets, and the global economy?

Watch the complete interview with Mike McGlone to discover his full insights into the macro outlook and market predictions.

This interview has been edited and condensed for clarity.