If there was a manufacturer or break week in the market, this certainly feels like one thing. On Wednesday, Trump’s tariff deadline approaches, with new employment numbers and speeches from Fed Chairman Jay Powell on Friday.
Bitcoin and other cryptos look as volatile as ever in the short term, with the weekend returning to the lowest we haven’t seen since 2023 at $1,775. Luckily, one buyer, Strategy CEO Michael Saylor, is not being deterred as he scooped up another $1.9 billion in Bitcoin.
“Even though the good news we’re watching… I don’t care about the price,” the author of Cic is Noel Acheson, a newsletter that joined us on this week’s show. “I look at fees, expectations, economic data, because that’s the driver now.” Let’s dig deeper…
Things are odd in ciphers now. Because convictions among people in space will certainly not be high.
For example, as economic data deteriorates and inflation revives, consumer sentiment is unravelled. As Trump talks about tariffs, it has a vicious flywheel effect that could potentially be self-realized. Increased pressure on prices leads to increased inflation, increased interest rates, and a recession. The odds of the recession are steadily rising, but Trump appears to be the first to blink, and Wednesday’s announcement can change all of that. Or, if he holds tight, it shows that the Fed, who will probably blink first, suspect things have gotten so badly in the market, could be guaranteed more interest rate cuts than this year.
One thing is for sure, people don’t feel good right now. In fact, consumer expectations of business conditions tanked at the historic low-rise in the latest research at the University of Michigan. Lower than the pandemic. Lower than 2008. Yes, given that, the truth is that digital gold on the internet is still held at $82,000.
BlackRock CEO Larry Fink is an interesting guy. As one of the world’s biggest asset managers, what Larry Fink says is undoubtedly important. This is part of the reason BlackRock made the decision to join Bitcoin ETFS, supporting the class funding in 2024. But in reality, it was only a few years ago that Fink was singing very different songs. In one interview in 2017, he said Crypto and Bitcoin were “indicators of money laundering.”
Now in a new investor letter, Fink is thinking that Bitcoin can continue to cut the US dollar as a preferred global reserve asset. I think he can have points (as US debt stacks above the measure of sustainability, Noel was in trouble in honor of the idea that Bitcoin lives in an age of economic uncertainty.
The story continues