Introduction

In this note, we analyze the recent developments in the rapidly shifting macro environment and the implications for crypto as an asset class. We also assess the out-of-sample performance of our NFT sentiment indicator, created in a prior note.

TLDR

• Global growth has entered a sharp slowdown phase, mainly due to global central banks turning more hawkish.
• In the US, inflation remains the top worry for the Fed. This will change if and when the US economy converges with the rest of the world and weakens: this could occur via global financial market contagion (from Wall Street to Main Street)
• “Early” signs to watch for a more crypto-favorable macro...