Despite the downward price action this week, the CEO of crypto wealth management platform Abra thinks macroeconomic forces could soon drive bullish price action for crypto.
Bill Barhydt says in a new interview with Thinking Crypto that the Purchasing Managers’ Index (PMI) indicates the US 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 believes the economy has been in a recession for a quarter and a half.
“I think this recession will go on probably until the end of the year… You’ll basically see the ‘Great Pause’ from the Fed.
What is the ‘Great Pause’? That’s when you’ll hear something to the effect of, ‘It’s fantastic to see that these dramatic rate increases that we’ve done have had the intended effect of slowing price inflation, blah blah blah blah blah. Congratulate ourselves, blah blah, congratulate ourselves, blah blah blah.’
Which actually in English means ‘We’re in a recession now and because the barometers that most of us use to figure that out are un-understandable to Joe Public, I don’t have to say that, but we’re actually in a recession, so we’re going to stop those dramatic rate increases and wait and see what happens, which means we don’t know what the F to do, but we’re in a recession.’”
The Abra CEO predicts the “Great Pause” will happen in October. He thinks at that point and going into the first quarter of 2023, it will be “game on” for risk-on assets like Bitcoin and crypto.
“I think it’s really going to be game on for equities and crypto as the money supply starts to increase dramatically as a result of the Fed pause and expectations in the bond market that we’re going to get back to the kind of downward channel that interest rates have been in for the last three decades.”
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