Macro Conditions Send Mixed SignalsOct 18, 2021
In our view, major central banks aren’t yet finished when it comes to accomodative monetary policy.
The global economy has rebounded since the depths of 2020, in many ways far faster than many expected. As a result, policymakers have looked to scale back their involvement and “normalize” policy as the world shows signs of restoration. The outlook for global growth, however, is far murkier, as we noted in our recent analyst call for Institutional members.
For starters, key economic indicators have disappointed in recent months, portraying a weakening, rather than strengthening, recovery. The peak in global liquidity growth earlier this year preceded the peak in economic momentum, which occurred right around the same time BTC and the rest of the crypto market started to roll over in late April to early May; notably, investors’ risk appetite seems to have topped out around the same time.