In this short note, we review the latest developments in macro and markets and revisit our scenario analysis for BTC's future returns.
The macro picture has become quite heterogeneous across regions and sectors. The US, its growth, and policy dynamics are the most relevant for crypto. We will therefore quickly summarize global developments before zooming in on the US.
Global growth is tracking at 2.5% YoY in 2024 which is below potential. There is one region of weakness, the Eurozone, and one sector of softness, manufacturing.
In the Eurozone private consumption and investment growth has been stuck close to zero. Markets have started to price more rate cuts by the European Central Bank (ECB), which led to the recent weakness in the...