The essential gist being this:
The Federal Reserve is caught between a rock and a tough place.
In the event that they elevate rates of interest once more, there is a excessive probability we’ll see extra financial institution collapses. In the event that they decrease charges, inflation will proceed to rise.
The “finest inflation hedge”, in accordance with Pomp is, in fact: Bitcoin.
However earlier than you cry ‘Bitcoin maxi!’ – the person comes with receipts!
Pointing to the truth that markets are ahead trying – they react to what they suppose goes to occur sooner or later.
Each time the Federal Reserve has indicated its going to decrease charges and print additional cash (i.e. cook dinner up the proper recipe for inflation), Bitcoin has skyrocketed (forward of time).
Bear in mind BTC’s run as much as $69K?
That got here after the Fed introduced it deliberate to decrease charges and switch the cash printers on, with the intention to battle the COVID market crash.
Bitcoin’s subsequent crash again all the way down to ~$16K?
That got here after the Fed introduced final yr, that it was elevating charges and stopping the printer, with the intention to battle inflation.
The by line?
When the market is instructed to count on inflation: Bitcoin pumps.
Is that this a direct trigger, or a random correlation? No thought.
But it surely’s value noting, as a result of ever for the reason that SVB collapse, the market has anticipated the Fed to start out decreasing charges and letting inflation climb once more.
…proper on cue, Bitcoin is up $8K in ten days.
And Pomp is not the one one who shares this opinion.
Balaji is so satisfied we’re about to see a $1M Bitcoin (on account of hyperinflation 😰), he is positioned a million-dollar wager on it.
Not a commerce. A wager. With this man: