Despite the drop in prices this week, the CEO of crypto wealth management platform Abra believes that macroeconomic forces could soon drive prices higher for the crypto.
Bill Barhydt said in a new interview with Thinking Crypto that the Purchasing Managers Index (PMI) indicates that the United States has been in a recession or is about to enter one.
The PMI is an economic indicator that aims to show the health of the manufacturing and service sectors.
Barhydt says he personally thinks the economy has been in recession for a quarter and a half.
“I think this recession will probably continue through the end of the year… You’ll basically see the Fed’s ‘big break’.
What is the “Big Break”? That’s when you’ll hear something like, “It’s fantastic to see that these dramatic rate increases we’ve done have had the intended effect of slowing price inflation, blah blah blah BLA bla”. Congratulations, blah blah, congratulations, blah blah blah.
Which actually means in English “We’re in a recession now and because the barometers that most of us use to figure that out are incomprehensible to Joe Public, I don’t have to say it, but we’re actually in a recession, so we’re going to stop these dramatic rate increases and wait to see what happens, which means we don’t know what to do, but we’re in a recession.
The CEO of Abra predicts that the “Big Break” will take place in October. He believes that then and into the first quarter of 2023 will be “the game” for risky assets like Bitcoin and crypto.
“I think it’s going to really play out for equities and crypto as the money supply starts to rise dramatically following the Fed pause and expectation in the bond market that we’re going to get back to the channel type. down which interest rates have been over the last three decades.
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