You might know that Jeffrey Snider, the Chief Strategist for Atlas Financial, runs the Eurodollar University podcast on YouTube. You can check it out here. Jeffrey recently highlighted, “A major bull escalation is underway on the treasury curve, signaling significant economic shifts.”
Jeffrey stressed, “We are witnessing a pronounced bull steepening on the treasury curve. To clarify, while nominal rates are moving lower, short-term rates tend to fall further and faster than long-term rates. This shift indicates growing market pessimism about both future and immediate economic prospects, expecting that interest rates will drop in the near term and possibly remain low for an extended period.”
Jeffrey pointed out, “LVMH highlights the broader economic challenges. The company missed quarterly earnings expectations, reporting sales just below 21 billion euros, compared to an expected 21.6 billion euros. Significant drops in sales outside of Japan, particularly targeting Chinese consumers, indicate a decline in luxury spending.”
He also cited “that the former head of the Federal Reserve Bank of New York, Bill Dudley, has shifted his stance, now advocating for rate cuts in response to rising unemployment and economic weakness. Additionally, Canada’s central bank has already cut rates for the second consecutive meeting.”
His conclusion is a clear signal of economic distress. It is likely that the headwinds for BTC are behind us, and it will go up?