Unchained Bits + Bips: Why Rate Cuts Are Less Likely This Year, but Crypto's Outlook Is Positive - Ep. 839
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May 21, 2025 In this engaging discussion, Alex Kruger, founder of Asgard, reveals his skepticism about Coinbase as a product despite its S&P 500 inclusion. Ram Ahluwalia, CEO of Lumida, shares fascinating anecdotes about the job market while analyzing the implications of the U.S. credit downgrade on both traditional and crypto markets. Noelle Acheson, author of the 'Crypto Is Macro Now' newsletter, emphasizes the connection between stablecoins and U.S. geopolitical strategy. The trio also debates the potential for Fed rate cuts and the significance of the altcoin ETF delay.
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Moody's Downgrade Is A Non-Event
- Moody's downgrade of US debt is largely priced in and unlikely to change who can buy U.S. debt.
- It is fundamentally a non-event but sends an important message amid tax debates.
Downgrade Could Hurt Crypto Short-Term
- A U.S. credit downgrade may spur a stock market correction, hurting crypto short-term.
- Crypto could follow stocks down if yields increase and valuations decline.
Fed Rate Cuts May Be Delayed
- Rate cuts in 2024 are becoming less likely and may only occur late in the year, if at all.
- Growth and earnings primarily drive markets, not just liquidity or Fed rate moves.