Crypto cares much more about federal interest rates than it does about liquidity being injected into global economy.
+7 Billion in marketcap since late July and before the first round of cuts.
$500 billion within 2 years in a constructive regime.
Zaheer
@SplitCapital
07-23
Crypto is an incredibly rate-sensitive market but not for the reason people think.
Today's understanding of crypto expansion is rooted in the idea that crypto trades as extremely long beta but stablecoins -- the killer feature of crypto -- doesn't share the same view.
1/x
As soon as you start thinking about stablecoin expansion everything else in crypto starts making sense.
Will go on podcast soon to discuss this, maybe @fejau_inc 👀?
Do you understand how insane this kind of growth is in a 5% interest rate regime?
Tether growth since the first rate hike +$40 billion in market cap.
If you're looking for your bullish catalyst for L1s <> DeFi, this is it.
Crypto has always indexed on rates being the biggest burden not liquidity injections.
Close thread - (may reopen)
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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