Economic Uncertainty Is Impacting Bitcoin Price

The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

The FRED Equity-Related Economic Uncertainty Index reached its sixth-highest reading ever today, as liquidity continues to dry up for risk assets. Spikes in this index typically coincide with significant drawdown periods in the S&P 500 Index.

The Daily Dive #142 we discussed the implications of the current credit market sell-off:

“The consequences of the falling prices in debt instruments is higher financing costs in the broader economy, as a forty-year high in the consumer price index along with a slightly hawkish Federal Reserve Board has lenders looking for higher yields.

“What should be watched going forward is how credit markets trade, as this has a direct impact on equity markets from a corporate financing perspective but also a market valuation perspective.

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