Kevin Warsh's True Intentions, Misunderstood as a Hawk, and Why Bitcoin Still Has a Chance to Recover

Summary

Lee Yun-su, CEO of Eric's Master Research Institute, analyzes why Bitcoin has struggled, attributing it to rate hike fears and supply dynamics. He explains why rate hikes are unlikely due to structural consumer weakness and AI-led investment, which sets the stage for a Bitcoin recovery. He also highlights a rotation from growth stocks to value sectors like healthcare and financials, and notes a buying opportunity in gold.

• Bitcoin's underperformance stems from rate hike fears and ETF outflows.
• Rate hikes are unlikely because of structurally weak US consumption, heavy AI capex, and high corporate bond yields.
• With rate hike expectations fading, Bitcoin is likely to recover, and a new catalyst such as the Clarity Act could accelerate flows.
• A rotation from AI-led growth stocks to value is emerging, with healthcare and financials outperforming over the past month.
• Gold is seen as a buying opportunity given its favorable long-term macro backdrop.
• A return to pre-2008 Fed operating style could increase macro and market volatility.