Crypto Bulls Just Got Their Macro Wake-Up Call: Here’s Why
The Philadelphia Federal Reserve’s May Manufacturing Business Outlook Survey showed a historic surge in the Future New Orders diffusion index, increasing by over forty points, marking the largest monthly spike since its inception in May 1968. This significant movement, noted by Julien Bittel, indicates a shift in economic conditions reminiscent of early 2017 during Trump's first term. Bittel believes that Q1 headwinds have turned into Q2 tailwinds, suggesting a bullish outlook as purchasing managers’ expectations change. The crypto market reacted moderately, with Bitcoin fluctuating around $104,000 and Ether near $2,600. Analysts highlighted that investors are under-positioned for potential growth surprises, indicating a possible market melt-up. A softer dollar and declining real-yield expectations may benefit non-yielding assets like cryptocurrencies. The total crypto market cap reached $3.28 trillion.
