๐ Why a strong GDP in the USA is bad news for altcoins
๐บ๐ธ The US economy came out stronger than expected in a recent report.
๐ GDP: 4.4%
๐ทโโ๏ธ Unemployment is low
๐ Demand is holding
๐ค The Paradox
It would seem that a "strong economy" means risk assets should rise.
But this is not happening โ โฆ especially with altcoins ๐ช.
โ ๏ธ The Reason
Strong macro data takes away the Fed's reason to do anything ๐ฆ.
- No stress = no incentives ๐ซ
- No incentives = no new liquidity ๐ง
Altcoins do not grow on "economics" ๐.
They grow on excess money ๐ต that is seeking yield ๐ and is not afraid of risk ๐ฒ.
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๐ Current Phase
- ๐ฐ Money is there
- ๐ But it is cautious
- ๐ It goes where liquidity is deep and risk is understood
๐ Therefore:
- $BTC holds ๐
- $ETH survives ๐
- Alts are slowly disappearing from the scene ๐ณ๏ธ
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โ Strong Economy = Good
But โ not for those waiting for a massive altseason ๐๐
MoonManMacro
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๐ Market
