Inflation takes center stage: Crypto Week Ahead
Your look at what’s coming in the week starting April 6.
What to know:
Crypto Week Ahead is a comprehensive list of what’s coming up in the world of cryptocurrencies and blockchain, as well as the major macroeconomic events that will influence digital asset markets. For an updated daily email reminder of what’s expected, click here to sign up for Crypto Daybook Americas.
André Dragosch, head of research at Bitwise Europe, said on social media that bitcoin has been “pricing in a (U.S.) recession already” and has acted as a “canary in the coal mine,” falling below signals from financial conditions and forward-looking indicators.
Recent data complicates that view. The ISM Manufacturing Index surprised to the upside in March, suggesting the U.S. economy may be more resilient to higher oil prices than in past cycles.
Following the release, market-based recession odds for this year dropped from around 37% to 28%.
As bitcoin has priced in a storm, Dragosch noted that the risk-reward ratio for bitcoin “is significantly skewed to the upside.” Still, an unexpected escalation in the war in the Middle East could bring about the priced-in storm.
