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Here’s the real reason behind this equity rally that no one has been able to tell you:
Positioning unwind (see thread below) + markets front-running the initial nominal revenue boost from the coming energy-driven inflation shock (Yes, inflation is coming).
Prices rise first → short-term earnings look great. This is what markets are front running now.
But once inflation hits costs and triggers demand destruction, equities WILL reprice lower. HARD.
This is exactly why BTC WON’T see a new ATH rally anytime soon. Anyone that tells you it will, is going to cost you money.
BTC has no corporate revenue, currently no options positioning tailwind to unwind, and no ability to pass on inflation.
BTC price is driven PURELY by macro TIDES.
I will tell you as soon as the Tide shifts from Falling to Rising = THE time to go ALL IN BTC/Crypto.
BTC Tides@BTCTides
💡When the Tail Wags the Dog & Why This Market Is Fragile: I called this rally early (see older posts) using positioing data. I even called ATH for ES (but this rally exceeded even my expectation). Here's how, and why you might want to be cautious (🧵).
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