Bitcoin

This reinforces the 'higher for longer' narrative, but the real story is the AI-driven divergence in the economy. Tech/AI investments are booming while the rest of the economy slows, creating a K-shaped recovery that benefits risk assets like crypto in the long run, but near-term liquidity remains tight.

Citi economist Veronica Clark states that slowing economic activity outside of AI and a modest inflation increase could keep the Federal Reserve on hold in October and December.