Despite the downward move this week, crypto- The CEO of wealth management platform Abra has argued that its macroeconomic strengths could create a price spike for crypto assets very soon.
Bill BarhydtIn a recent interview with Thinking Crypto, he underlined that the Purchasing Managers Index (PMI) shows that the US is in or about to enter a recession. PMI is also interpreted as an economic indicator aimed at showing the health of the manufacturing and service sectors.
Barhydt expressed his views on the subject, stating that he personally believes the economy has been in recession for some time:
“I think this recession will probably continue until the end of the year… Basically you will see the ‘Great Recession’ from the Fed. If you were to ask what is the ‘Great Pause’? That’s when you’ll start hearing stories like, ‘It’s great to see that these dramatic rate hikes we’ve made are having the intended effect of slowing price inflation.
This situation actually translates to ‘We are in a recession right now, and I don’t need to say this, since the barometers most of us use to understand it are incomprehensible to Joe Public, but we are actually in a recession. “After a while, we’re going to stop interest rate hikes and wait to see what happens, so we don’t know what will happen as a result.” Sharing his comment, Barhydt made an “ironic” criticism of the FED’s policies and the current situation in the markets.
Abra CEO predicts that the “Great Pause” will happen in October. At this point and entering the first quarter of 2023, bitcoin and “the game will go on” for risky assets like crypto.
“I really think the game will continue for equities and crypto as the money supply begins to increase dramatically as a result of the Fed’s pause and the expectations in the bond market. Interest rates have been going on for the last thirty years.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.