The bitcoin [BTC] price is back in the news after falling nearly 3% in a single day, settling at $69,134 at the time of publication. This comes in light of the uncertainty surrounding the economic scenario in the US, which is expected to enter the no-landing zone soon.
Darius Dale, founder and CEO of 42Macro, spoke about the dire economic situation and its impact on #bitcoin in a recent conversation with Anthony Pompriano. According to Mr. Dale.
"There will be perfect disinflation over the next few quarters, but it will likely reach a certain level by the time we get into the fourth quarter.
He added that.
"As for inflation falling below the Fed's 2% target, we think that could pose some challenges for asset markets.
Talk of a "soft landing," "hard landing" or "no landing" is not new. Discussing the current scenario, Dale emphasized that a "no landing" means that economic growth would be at or above trend and inflation would slow, but the 2% target would not be reached.
The lack of a clear economic trajectory has reinforced the downtrend in the #cryptocurrency sector, with several red candles appearing on some price charts. In addition, despite signs of recovery in the US economy, investors in the cryptocurrency market and on Wall Street are skeptical of the Federal Reserve's forecast of three rate cuts in 2024.
Mr. Dale holds a similar view.
We believe the market is moving in the right direction, that this is a sustainable economy that does not require monetary easing, so we appreciate the lower rates and volatility in the bond market, but are holding back in risk asset markets such as equities, credit and cryptocurrencies.
He further noted.
"In my opinion, the fall in cryptocurrency prices is a flawed assumption that is inconsistent with the history of the market. The market has experienced reflationary regimes many times before and our clients are currently benefiting from them.
According to Dale, the cryptocurrency market is experiencing a new cycle, driven by the emergence of bitcoin-spot ETFs and the inevitable halving of the bitcoin exchange rate.
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