Eli5 please 🥺

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Discussion

1. Easing monetary conditions are generally positive towards risk assets, bitcoin particularly.

2. Monetary conditions were at a point where no further easing without significant repurcussions was possible when covid started, but the fed pulled a historical tightning of monetary policy in terms of significance and speed. << this was where we were

3. Yesterday, the FED clearly signaled that they were turning dovish (easing monetary policy), after 1+ years of being hawk (tight monetary policy)

4. So as we head into the halving (around late April 2024), which is generally a bullish event for BTCUSD, the FED COULD start loosening its monetary policy, which is basically adding fuel to the fire (i.e. BTC to the moon)

This is illustrated in the infographic where you can IMAGINE the purple lines heading down, which means price fo up for assets like bitcoin, AND that coinciding with the halving (which is the orange vertical line).