It'll be interesting to see loose monetary principles on Bitcoin in the coming years. I've seen claims recently that the 4 year market cycle due to Bitcoin halvings doesn't actually exist and its just periods of high liquidity and loose monetary policy. Well, I expect this cycle will continue as normal, with the current Bitcoin bull run, and then a crash following, despite looser monetary conditions. If the people recently making the claim are right though, and it has nothing to do with the halvings, then Bitcoin should be expected to not peak this market cycle but just keep going up as long as loose conditions last. I think we'll definitely see that recent hypothesis is wrong.
Imagine, suddenly - without speculation - fed target rate dropped by 200 pts and stabilized. I’m not sure how much worse things might get, cutting to the chase. Of course, academic models would look just awful.
It'll be interesting to see loose monetary principles on Bitcoin in the coming years. I've seen claims recently that the 4 year market cycle due to Bitcoin halvings doesn't actually exist and its just periods of high liquidity and loose monetary policy. Well, I expect this cycle will continue as normal, with the current Bitcoin bull run, and then a crash following, despite looser monetary conditions. If the people recently making the claim are right though, and it has nothing to do with the halvings, then Bitcoin should be expected to not peak this market cycle but just keep going up as long as loose conditions last. I think we'll definitely see that recent hypothesis is wrong.
Imagine, suddenly - without speculation - fed target rate dropped by 200 pts and stabilized. I’m not sure how much worse things might get, cutting to the chase. Of course, academic models would look just awful.