Investment firm Matrixport today released an economic analysis that presents bullish expectations for risk markets. This includes stocks, bitcoin (BTC), and cryptocurrencies.

In the report, they project that U.S. inflation will continue to decline over the next two years to be around the Federal Reserve's (Fed) target of 2% year-on-year. According to the latest report, published yesterday, it stands at 3.1%.
According to the company, "with inflation at 3.1% and US (federal funds) interest rates at 5.25%, there is an inconsistency in the Fed's monetary policy." The agency has kept rates high without falling since July despite the reduction in inflation.
However, he believes that this problem does not hurt the economy, as it would restrict capital spending, causing a recession that will end up benefiting the markets. "We argue that the longer the Fed maintains a 'restrictive' monetary policy, the more savers will be paid, ultimately influencing risk assets," he said.
By way of comparison, he indicated that the setup is similar to that of January 2019, when the Fed raised rates back-to-back in 2018 only to pause for seven months. During that 'pause', the price of bitcoin rose almost 300%. And currently, the currency also continues to appreciate with rates stagnant since July.