Something's not right with the economy, but #Bitcoin is loving it.
The latest US economic data shows a toxic mix of rising inflation and a crumbling job market, a situation Macroeconomics are calling "stagflation." But instead of collapsing, $BTC just climbed over $116,000, with Wall Street's biggest risk assets surging alongside it.
The narrative is shifting fast. The bad economic news is raising expectations that the #Fed will be forced to cut interest rates on Wednesday, making riskier assets like Bitcoin and stocks a prime target for fresh capital. This is a powerful signal that the market sees Bitcoin less as a risky fringe asset and more as a go-to play for a failing economy.
- US jobs data showed a downward revision of nearly 1 million jobs, the largest in history.
- Initial jobless claims surged to a three-year high, a major sign of labor market weakness.
- The headline #cpi rate was higher than expected, showing inflation is proving stickier than anticipated.
While this looks like a crisis for the economy, it's a massive opportunity for Bitcoin. The price action is proving that it's acting in lockstep with other risk assets, but with even stronger technicals. The chart is showing a clear pattern of higher lows, and key support levels are rising. I'm keeping a close eye on this, because if the Fed cuts rates, we could see an explosive move higher.
