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HEALTH, WEALTH, AND HAPPINESS

July 28, 2022

"My guiding principle is that prosperity can be shared. We can create wealth together. The global economy is not a zero-sum game."

- Julia Gillard

Today will be the final column of our beloved columnist Mati Greenspan. More details to come on the bold new direction of Bitcoin Market Journal in tomorrow's newsletter. Here's Mati!

Yup, you read right. Several states are actually giving out free money in order to reduce the impact of inflation. Sorry, just one more time. They're printing more money to offset the fact that they've already printed too much. This is equivalent to trying to dig your way out of a hole. You're just gonna end up with more inflation.

Up the downstair 

Continuing on today's theme, yesterday the US Federal Reserve announced its decision to raise interest rates by a whopping 0.75%, effectively tightening the screws on the global economy by adding more friction to lending and spending.

Usually, this would be taken as terrible news, but markets seemed to rejoice. Especially cryptocurrencies, which generally seemed to outperform stocks on this announcement. Ether, for example, shot up 5.3% within the first 3 minutes of the rate hike.

Investors were expecting to see a bit more aggressive action from Powell, but it's not entirely uncommon these days to see a bullish rate hike.

It all makes sense

For a president to insist there's no recession when the technical definition is met does make sense from a political standpoint. Better to allow people to argue semantics than to admit to a recession under your administration. But it is worth noting that unemployment is extremely low compared to what we generally see during a recession.

Here we can see the US unemployment rate over time with recessions highlighted in grey.

Judging by the markets today, it's pretty clear that regardless of stats, figures, rate hikes, inflation and technical definitions, despite the very hard times that we're all feeling right now, investors are clearly optimistic about the future.

In the end, isn't that all that really matters? I just hope it lasts.

Have fun out there and stay safe,

Mati Greenspan

Analysis, Advisory, Money Management

Bitcoin Market Journal is a daily newsletter that makes you a better crypto investor. It is created by Evamarie Augustine, Charles Bovaird, Mati Greenspan, John Hargrave, and Alexandre Lores.

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