The economy is surging — which means it might be time to start buying Bitcoin
The economy is refusing to go down. If the trend continues, cryptocurrency prices are going to start rising — especially with Bitcoin's halving.
The United States economy seems like it is refusing to be derailed. It added a staggering 336,000 jobs in September, defying most expectations. This achievement becomes all the more remarkable against the backdrop of soaring yields on longer-term Treasury bonds and surging mortgage rates.
The message embedded in the job data is crystal clear: the world’s largest economy continues to charge forward, even in the face of aggressive monetary tightening. It’s a testament to the economy’s resilience, and suggests that higher interests are here to stay for an extended period.
While this news could send shivers down some spines, particularly for those invested in stocks, it’s crucial to understand the bigger picture. Stocks may appear less enticing when you can secure a 6% return with a savings account, yet we may be reaching an inflection point with bonds.
The bond market has witnessed a historic rout, described by Bank of America Global Research as the “greatest bond bear market of all time.” But the analysis isn’t all doom and gloom — there are hints that the relentless sell off in U.S. Treasuries could come to an end. And if we do indeed see a recovery, it could signal the start of a new bull market for risk assets.
PLOT TWIST
But here’s the twist — what may spell bad news or doom for financial markets could be good for the broader economy. The Federal Reserve holds a pivotal role in shaping the path for risk assets, and it has just two more meetings before the end of the year. Should the Fed decide to suspend further rate hikes, it could act as a catalyst, triggering market anticipation of an impending rate cut. This anticipation could, in turn, set the stage for a massive risk-on rally across various asset classes, including cryptocurrencies.
FESTIVE REVELRY COULD SET THE TONE FOR 2024
The last three months of the year often introduce a heightened Santa rally. After the year we’ve had, it might soften the blow and pave the way for a more palatable 2024. History shows that the market tends to gather momentum during this festive season, with a surge in buying activity and positive sentiment among investors. Among these factors, regulatory decisions regarding spot ETFs and any potential pause in rate hikes, or even a shift in the Fed’s messaging concerning future hikes will be watched closely.
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