Dragonfly Partner: Macroeconomic Uncertainty Will Suppress Token Prices Even as Crypto Market Fundamentals Strengthen
PANews, March 5th: Dragonfly General Partner Rob Hadick shared his views on the current macroeconomic and market trends on social media. He believes that the Trump administration may intentionally push the economy towards a recession as an excuse to cut welfare, foreign aid, government spending, and imports, even though these areas are drivers of economic growth. Additionally, he predicts that the government will later stimulate the economy through measures such as large-scale tax cuts, quantitative easing (QE), golden visas, and manufacturing subsidies.
He pointed out that inflation is a key issue, and there is a divergence in market expectations regarding Federal Reserve rate cuts. If economic growth deteriorates, Fed Chair Powell may be forced to cut rates, otherwise, unconventional monetary easing policies might emerge, which would drive up inflation and risk asset prices. Furthermore, he mentioned that the deterioration of U.S. relations with allies and policies supporting certain regimes could increase the risk of "black swan events." Although AI investments will provide market support, if companies like NVIDIA perform weakly, the market may face greater pressure.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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