In recent days we have witnessed a good run upward in the price action within the cryptocurrency market, an element that leads to the necessary and vital question; What macroeconomic factors have driven the recent price rebound?.
In this sense and to answer this question, and according to the article by Brian Nibley columnist of the Cointelegraph portal, there are several macroeconomic factors that are getting Bitcoin and cryptocurrencies ready to continue rising as the stock market seeks to extend its recent gains.
It has come to light that "Michael Burry, a hedge fund manager, stated in January that the US could enter a recession by the end of 2023, with CPI lower and the Fed cutting rates (note that today's CPI was much lower than expected, further fueling the recent rally). In their view, this would trigger another pickup in inflation."
It has also indicated "that the U.S. economy is likely to enter stagnation speed or experience a mild recession while experiencing some level of persistent inflation. This could mean that markets will continue to trend higher until an official recession occurs."
On the other hand, "Despite the Fed's fight against inflation and market participants' expectations of an inevitable recession, the first half of 2023 has been quite bullish for equities, with the rally extending into July."
Likewise. "While bonds have sold off again, pushing yields to near 2022 highs, risk assets such as tech stocks have soared." So I would like to know your appreciation on the current behavior of cryptocurrency price action.
SOURCES CONSULTED
Cointelegraph. Bitcoin and crypto brace for further upside as equities look to extend their recent gains. Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: Cointelegraph
