Investors Are Betting on Inflation Declining. Are They Right?

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 13 September 2022

⏱️ 19 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by Nexo.io, Chainalysis and FTX US. Bitcoin was up 15% over the weekend. Stocks have seen four days of green. The reason? Investors are anticipating that August’s inflation numbers (to be released on Tuesday) will show another monthly reduction in the inflation rate, suggesting that we’re past peak inflation. Will they be proven right? - Nexo is a security-first platform where you can buy, exchange and borrow against your crypto. The company ensures the safety of your funds by employing five key fundamentals including real-time auditing and recently increased $775 million insurance on custodial assets. Learn more at nexo.io. - Chainalysis is the blockchain data platform. We provide data, software, services and research to government agencies, exchanges, financial institutions and insurance and cybersecurity companies. Our data powers investigation, compliance and market intelligence software that has been used to solve some of the world’s most high-profile criminal cases. For more information, visit www.chainalysis.com. - FTX US is the safe, regulated way to buy Bitcoin, ETH, SOL and other digital assets. Trade crypto with up to 85% lower fees than top competitors and trade ETH and SOL NFTs with no gas fees and subsidized gas on withdrawals. Sign up at FTX.US today. - I.D.E.A.S. 2022 by CoinDesk facilitates capital flow and market growth by connecting the digital economy with traditional finance through the presenter’s mainstage, capital allocation meeting rooms and sponsor expo floor. Use code BREAKDOWN20 for 20% off the General Pass. Learn more and register at coindesk.com/ideas. - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsors today is “Razor Red” by Sam Barsh and “The Life We Had” by Moments. Image credit: Francesco Carta fotografo/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.2	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:14.8	The breakdown is sponsored by nexo.io, chain aliasis, and FtX, and produced and distributed by CoinDesk.
0:22.8	What's going on, guys? It is Monday, September 12th, and today we're talking about why traders
0:27.7	are betting on inflation declining. Are they right? Before we get into that, however, if you are
0:33.7	enjoying the breakdown, please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper into the conversation, come join us on the breakers discord.
0:41.9	You can find a link in the show notes or go to bit.ly slash breakdown pod.
0:46.0	Also, a disclosure as always. In addition to them being a sponsor of the show, I also work with
0:50.5	FTX. All right, we are setting up for an interesting week. And so today what we're
0:57.3	going to do is look at a few of the stories that set the tone for what we're likely to see throughout.
1:03.4	Specifically, we are going to be honing in on the macro. But before we get into that, you might
1:08.2	have noticed that crypto has been having a bit of a run of it.
1:11.6	Bitcoin was up about 15% over the weekend in a rally that started on Friday.
1:16.6	Other cryptos followed as well, although they've been cooling slightly in the last couple of hours.
1:20.9	The same was true with stocks.
1:23.1	Last week, each of the three major U.S. stock indices closed up more than 2%.
1:27.2	Monday continued that trend. This morning, some of the three major U.S. stock indices closed up more than 2%. Monday continued
1:28.6	that trend. This morning, some of the indices were up as much as around 1%. And all of the S&P
1:34.3	511 sectors were rising. If the trend continues, this will be the S&P's fourth consecutive day of
1:39.8	gains. So what is going on? Well, in Bitcoin, there were a lot of explanations proffered. Noticably, there was
1:47.8	a pomp capitulation argument saying that Anthony Pompliano had removed his laser eyes and taken the
1:52.5	word Bitcoin out of his Twitter profile, allowing the next cycle to begin. Alex Kruger listed that
	...

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