In a recent report by Capriole Investments’ Charles Edwards explored the Federal Reserve’s ever-expanding war chest and its potential implications for the Bitcoin and crypto market. As Bitcoin gears up for its halving in April 2024, a pivotal event that will make it scarcer than gold, understanding the macroeconomic environment becomes crucial. Why Macro Matters For Bitcoin And Crypto Edwards underscores the inherent interconnectedness of global markets, asserting, “Bigger markets drive smaller markets.” This symbiotic relationship is evident in the crypto realm, where altcoins’ performance is closely tethered to Bitcoin’s movements. Drawing a parallel with traditional markets, Edwards elucidates, “Bonds drive equities, equities drive Bitcoin and Bitcoin drives altcoins.” Contrary to the prevailing sentiment of an impending recession in 2023, the equities market defied expectations with a robust rally. This surge was not arbitrary but was propelled by the groundbreaking integration of usable AI, which has the potential to significantly augment GDP. Edwards directs attention to the NAAIM Exposure Index, a barometer of NAAIM managers’ equities exposure. The current readings of this index are reminiscent of those in June a ..
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