Bitcoin and crypto brace for further upside as equities look to extend their recent gains
As Alden discusses:”So as the Federal Reserve raises rates, federal interest expenditure boosts, and the federal deficit widens paradoxically at a time when deficits were the main cause of inflation in the first location.”In other words, todays inflation has actually been mostly driven by the creation of new federal financial obligation, or what some may call federal government cash printing.Raising interest rates to calm inflation can work, however its implied for inflation that has its roots in a growth of credit connected to banking loans. Huge Tech defies economic downturn price quotes and propels equities Despite the Feds fight with inflation and market individuals expectation of an inescapable recession, the very first half of 2023 has been rather bullish for equities, with the rally extending into July.
How can this be, and will the rally continue?Michael Burry of Big Short popularity stated in January that the US could be in economic downturn by late 2023, with CPI lower and the Fed cutting rates (note that todays CPI print came in much lower than expected, even more fueling the recent rally). From this, she concludes that the United States economy will likely go into stall speed or experience a moderate recession while experiencing some level of consistent inflation. This might indicate that markets continue trending up until a main economic downturn hits.My July 2023 newsletter is out: https://t.co/gTH0nUyrU8The subject focus on financial supremacy, and how large debts and deficits can silence the impact of higher interest rates as a policy tool.
“A July 11 report from Pantera Capital makes similar observations, keeping in mind that real interest rates also have a very different story to tell when compared to the 1970s.”The conventional markets might struggle– and blockchain might be a safe haven,” in part since “The Fed needs to continue to raise rates,” provided that real rates remain at -0.35%, according to the report.”They go on to note that while the majority of other property classes are delicate to interest rates, crypto is not.
How can this be, and will the rally continue?Michael Burry of Big Short fame declared in January that the US might be in economic downturn by late 2023, with CPI lower and the Fed cutting rates (note that todays CPI print came in much lower than expected, further fueling the recent rally). This could indicate that markets continue trending upward up until an official economic downturn hits.My July 2023 newsletter is out: https://t.co/gTH0nUyrU8The topic focus on fiscal supremacy, and how large debts and deficits can silence the effect of higher interest rates as a policy tool.”In other words, todays inflation has actually been mostly driven by the creation of brand-new federal debt, or what some might call government cash printing.Raising interest rates to relax inflation can work, however its indicated for inflation that has its roots in an expansion of credit connected to banking loans. Big Tech defies recession price quotes and moves equities Despite the Feds battle with inflation and market participants expectation of an inevitable economic crisis, the first half of 2023 has been rather bullish for equities, with the rally extending into July.”The traditional markets may struggle– and blockchain might be a safe haven,” in part because “The Fed requires to continue to raise rates,” offered that real rates stay at -0.35%, according to the report.