Konqueror on Nostr: #GM Here’s a great perspective I want to share from Julien Bittel at GMI There’s ...
#GM
Here’s a great perspective I want to share from Julien Bittel at GMI
There’s a lot of noise in the market right now – conflicting narratives everywhere.
But here’s the reality – or at least my take on what’s really going on:
Everything happening in markets right now, especially in crypto, is a direct consequence of the tightening of financial conditions in Q4 last year.
When financial conditions tighten, liquidity gets drained, and economic surprises start to slow. I mentioned this before, including in a tweet I posted yesterday.
That’s why we’re seeing a soft patch in the economic data and why the market is freaking out about a growth scare, with recession talk now making a comeback.
Here’s the thing:
This will all reverse next month.
Financial conditions have been easing rapidly over the past two months – dollar down, bond yields down, oil down – and that’s setting the stage for a recovery in the data soon. Remember, financial conditions are always leading.
One final point:
With the drop to $80k, this tightening is now fully reflected in the price of Bitcoin.
Could we go a little lower? Sure…
But here’s what I’d say:
Everyone’s already on the same side of the trade – sentiment is extremely bearish, and Bitcoin is sitting at an RSI of 23, the most oversold level since August 2023.
So if you’re still bearish, don’t get too comfortable…
Instead, be greedy when others are fearful.
Here’s a great perspective I want to share from Julien Bittel at GMI
There’s a lot of noise in the market right now – conflicting narratives everywhere.
But here’s the reality – or at least my take on what’s really going on:
Everything happening in markets right now, especially in crypto, is a direct consequence of the tightening of financial conditions in Q4 last year.
When financial conditions tighten, liquidity gets drained, and economic surprises start to slow. I mentioned this before, including in a tweet I posted yesterday.
That’s why we’re seeing a soft patch in the economic data and why the market is freaking out about a growth scare, with recession talk now making a comeback.
Here’s the thing:
This will all reverse next month.
Financial conditions have been easing rapidly over the past two months – dollar down, bond yields down, oil down – and that’s setting the stage for a recovery in the data soon. Remember, financial conditions are always leading.
One final point:
With the drop to $80k, this tightening is now fully reflected in the price of Bitcoin.
Could we go a little lower? Sure…
But here’s what I’d say:
Everyone’s already on the same side of the trade – sentiment is extremely bearish, and Bitcoin is sitting at an RSI of 23, the most oversold level since August 2023.
So if you’re still bearish, don’t get too comfortable…
Instead, be greedy when others are fearful.