The Inflation Trap No One Is Talking About
The commentary that inflation will ease further but deflation is not a possibility carries profound weight for risk asset cycles. This is not a political soundbite; it is a serious challenge to the immediate "Fed Pivot" narrative many investors are clinging to. If the economy manages to avoid outright deflation, it removes the necessity for emergency liquidity injections. The system maintains a state of high-cost capital. This sticky rate environment—where inflation is low but still positive—is the poison pill for leveraged growth and speculative assets. It means the massive, parabolic lift-off many are waiting for in $ETH and $BTC is less likely to be triggered by sudden monetary expansion. Instead, we are left with a grind higher fueled purely by structural demand, such as institutional adoption and ETF inflows. Investors must adapt to a new paradigm where macro relief is limited, and the power of sustained high rates on valuations must be respected.
This is not financial advice.
📊
