On today’s episode of Macro Markets, veteran stock market and Cointelegraph analyst Marcel Pechman begins by analyzing Argentina’s 150% inflation rate, proving that people continue to work and spend (somehow) even as the local currency devalues.
What is the lesson here? First of all, everyone wants free money. This explains why altcoins and airdrops continue to attract attention, whether or not they end up being unprofitable for most investors.
You’d think these investors would learn their lesson quickly, but in reality, the opposite is true. All that’s needed is a new marketing strategy – a new way of promising free money – just as Argentines tend to forget about the mess their government has created over the past decade.
The bottom line, for Pageman: Forget any promises of free money or dividends that don’t come clearly from economic activity.
The next installment of the show covers a favorite topic of economists: an inverted yield curve. This happens when short-term Treasuries have higher returns than long-term Treasuries, suggesting that the Fed will hurt the economy.
Pechman said that this is a recession indicator, but historically, recessions take 6 to 36 months to occur, so traders should avoid using such indicators. Those who were calling for a recession 12 months ago saw the S&P 500 up 15% and even gold gaining 8% were deluding themselves. Pechman argues that it would be foolish to bet on a crisis at the same time the central bank is increasing liquidity.
This is why Bitcoin’s hard-locked monetary policy is so important. So when you hear someone asking to buy $100,000 of bitcoin by the end of the year, it’s partly because of the devaluation of the dollar. Pechman then explained why the money that ended up going to Bitcoin (BTC) came from the gold, real estate, and bond markets.
Finally, Pechman shows why the approval of a spot Bitcoin exchange-traded fund (ETF) is so important and necessary for a $200,000 bull run.
The macro market is only in the new Cointelegraph Markets & Research YouTube Channelso be sure to like and subscribe today!
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