In a recent episode of Cointelegraph’s Market Talks, host Ray Salmond engaged in a discussion with Jamie Coutts, a chartered market technician and crypto market analyst at Bloomberg Intelligence. The conversation explored the potential impact of Bitcoin’s pre- and post-halving price action in light of recent changes in global monetary policy.
Coutts began by emphasizing the significance of liquidity as a driver of risk assets. He acknowledged that while the crypto space possesses strong fundamentals, the ultimate determinant of asset performance is the availability of capital. Given the tightening cycle of global monetary policy and the possibility of rising unemployment and stress in the banking sector, Coutts warns that there may be further challenges ahead for risk assets like Bitcoin.
The analyst’s remarks reflect his longstanding concern about the state of the financial system. Throughout the year, Coutts has highlighted the underlying stress in the US banking system and other segments of the economy. He asserts that the current situation differs from previous Bitcoin cycles. However, Coutts reminds us that we live in a fiat and credit-money-based system, which inevitably necessitates a return to some form of easing. The current system cannot sustain prolonged periods of deflation. Consequently, assets like Bitcoin, which have control over their inflation schedules, stand a better chance of thriving when economic conditions stabilize.
Despite the gloomy macroeconomic outlook, Coutts also suggested that there may be light at the end of the tunnel. He believes that we could be nearing the end of the economic downturn, although there are still significant challenges to address. This cautious optimism stems from his understanding of the need for a return to monetary easing. Since the current financial system operates on fiat and credit, there is an intrinsic pressure to providerelief and stimulate economic growth. Therefore, when conditions improve and the economy starts to rebound, assets like Bitcoin with their inflation-resistant properties may fare well.
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For further insights into Coutts’ perspectives on the macroeconomic climate, Bitcoin, Ethereum, altcoins, and stablecoins, the full episode of Market Talks on the new Cointelegraph Markets & Research YouTube channel covers an array of topics. By tuning in, viewers can gain a more comprehensive understanding of the current state of the market and how various digital assets may be impacted.
Cointelegraph’s Market Talks provides a valuable platform for market analysts and experts to share their insights and predictions. By exploring a wide range of topics and inviting key figures in the industry, the show offers viewers an opportunity to deepen their understanding of the ever-evolving crypto landscape. As the market continues to evolve, staying informed and up-to-date with the latest content is essential.
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