“Early this month, the financial markets plunged so much that it would not only put us into correction territory, but also into a bear market, but we experienced rapid volatility and recovery, which makes it feel as if nothing had happened.”          

“Early this month, the financial markets plunged so much that it would not only put us into correction territory, but also into a bear market, but we experienced rapid volatility and recovery, which makes it feel as if nothing had happened.”          

Many people believe that the bull market is over, but some of the largest institutions continue to accumulate Bitcoin.            

We are at a critical juncture, and this week is a decisive week: tomorrow will be released CPI data, which measures US inflation, which may be one of the most important indicators to determine the Fed’s interest rate policy in September.   

At the same time, the Fed faces a dilemma about how much and how fast to cut interest rates. On the one hand, the weak labor market has raised concerns about a potential recession; on the other hand, despite signs of cooling, inflation remains above the Fed’s target level.        Inflation hits low-income households harder, while the rich enjoy a booming stock market and long-locked low mortgage rates. This splintering of the U.S. economy is deepening political divisions and could play a major role in the upcoming election.           

The market is pricing in at least one rate cut in September, with a 96.43% chance of a full rate cut by the end of the year.    

Given how quickly risk markets have rebounded, a catastrophic system-wide decline is not expected anytime soon. Encouragingly, stablecoin net supply has increased, suggesting new money is willing to enter crypto markets. Until then, we expect volatility to continue as more economic data emerges and election odds fluctuate.