The Bitcoin Layer Global Macro Update: Recession Fears Surge, But Bitcoin and Risk Markets Bounce
4 snips
Mar 15, 2025 Explore the latest economic turmoil as recession fears grip markets, yet Bitcoin makes a surprising rebound. Delve into falling consumer sentiment, the wealth effect's influence on spending, and the implications of a steepening yield curve. With gold prices soaring to $3,000 and Treasury yields declining, liquidity conditions shift dramatically. Gain insights into Bitcoin's technical indicators and what its recent price movements reveal about future market dynamics.
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Wealth Effect and Consumer Sentiment
- Consumer sentiment is heavily influenced by the wealth effect.
- Falling stock and real estate prices lead to decreased consumer spending.
Economic Surprise Index and Equity Returns
- The Citi Economic Surprise Index measures how economic data performs against expectations.
- A negative index, like the current one, correlates with weaker equity returns.
ISM Services and US Economy Health
- The ISM Services Index provides insights into the US economy's health.
- Current readings show expansion in services, employment, and prices, but manufacturing is still struggling.
