- As US tariff policy becomes increasingly detached from economic objectives, poor economic data have increased hopes of a rate cut – something the US administration is very actively advocating for.
- While we believe a September rate cut would be counterproductive and remains unlikely, liquidity conditions in the US as well as globally are already historically loose and further liquidity injections via different mechanism are likely – this should continue to support asset prices.
- While the pattern of past crypto market cycles suggests we may be nearing the cycle top, we believe that liquidity conditions, progressing institutional adoption, continued strong demand for treasury companies, and streamlined US regulation mean the current cycle has further to go.
The Sygnum Monthly Investment Outlook is available to qualified investors. For additional insights on the digital asset markets, find more updates here.
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