Despite the bearish 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 that 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 recession for a quarter and a half.
“I think this recession will probably continue through the end of the year … You’ll basically see the ‘Great Pause’ of the Fed.
What is the ‘Big Break’? That’s when you’ll hear something to the effect of, ‘It’s fantastic to see that these dramatic rate hikes we’ve done have had the intended effect of slowing down price inflation, blah blah blah blah blah. Congratulate ourselves, blah blah, congratulate ourselves, blah blah blah.’
Which actually means in English ‘We are in a recession right now and because the barometers most of us use to figure it out are incomprehensible to Joe Public, I don’t have to say it, but we are actually in a recession , so we’re going to stop those dramatic rate hikes 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 that the “Big Break” will happen in October. He thinks at that point and in the first quarter of 2023, it will be “game on” for risk assets like Bitcoin and crypto.
“I think it’s really going to be a game for stocks and crypto as the money supply starts to increase dramatically because of the Fed pause and expectations in the bond market that we’re going to return to the kind of downward channel that interest rates have been in for the last three decades. .”
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