Key points:
Bitcoin traders wait for signals of US economic policy loosening as data forces the Federal Reserve into a corner.
Recession is more likely than not, sources say, amid rising unemployment and resurgent inflation.
Bitcoin and risk assets should ultimately gain from a recession shock.
Bitcoin (BTC) stands to gain as a US recession becomes the “base case scenario.”
Fresh analysis from sources including trading resource The Kobeissi Letter makes grim predictions for the US economy and Federal Reserve.
Fed’s “worst nightmare” gets real
US economic health is due to take a hit on the back of trade tariffs and the resurgent inflation, which may accompany them.
The latest macroeconomic data, which includes Q1 GDP and the Fed’s “preferred” inflation gauge, puts officials in a tight spot, Kobeissi says.
GDP came in markedly below expectations, turning negative against a forecast 0.3% gain.
US quarterly