Bitcoin, Stock, set to fly higher amidst US deficiency

Key Takeaways:
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Paul Tudor Jones hopes massive upside down from US markets, but notes that widespread retail and institution participation is required for a climax of the market.
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The values of the US stock market and economic conditions do not point to an immediate collapse, supporting the thesis of the ongoing speculation.
Billionary investor Paul Tudor Jones firmly believes that US financial markets are far from a bubble and point to the growing crisis in the US fiscal as a catalyst for risk assets, including Bitcoin (Btc). Tudor’s main thesis depends on loose financial policies, retail flow and speculation.
The issue with the fiscal debt favors the allocation of risk assets, including Bitcoin
In July, United States President Donald Trump signed “a great good bill,” which expanded the tax deduction and Raised the ceiling to the debt.
The interest in US debt is expected to exceed $ 1 trillion in 12 months for the first time in history, causing analysts to expect a 127% UTA-GDP ratio for 2026. Government needs to deflateor otherwise the money will be paid.
Those concerns intensified while 33% of US treasurys were held by foreign creatures. Injection of liquidity and suppressing real produce tends to urge holders to look for better return opportunities to another place, putting down pressure on demand for wealth and the dollar itself.
Tudor Jones draws similarity During the period of 1999, the 90% of NASDAQ acquired five months of “DOT-COM” crash “in 2000. But at this time, the conditions were more favorable. For starters, the US Federal Reserve (FED) raised interest rates in 1999, which started the year at 4.75% and entering 2000 to 5.5%, opposite the market expectation in the coming months.
Another difference came from a strict policy that prevailed throughout 1999. The Fed balance sheet contracted to $ 5.38 trillion in early 2000 from $ 8.66 trillion last year. Today, the script is upside down: Fed is unlikely to turn its balance back for the next 12 months, especially with signs of softening in the labor market, which offers the imagination -aware momentum and an extended path.
Tudor Jones says that a speculation -haka frenzy is far away, expecting more gains
Tudor expects a “massive rally,” “more potentially exploding than in 1999,” but argued that markets are currently far from a “speculation -in -frenzy.” Tudor added that “will take more retail purchases” and “real money” before a “blow” at the top. Tudor Jones does not predict an immediate collapse, and stock market metrics support this thesis.
According to yardeni research data, the S&P 500 forward price-to-income has many seated near 23 times, which is less than 25 times the peak seen in 2000, indicating that there is still room for many expansion under favorable emotions.
Tudor expects “speculation -fatigue” eventually, not a sudden collapse usually associated with bubble explosions. Tudor Jones recommends allocations that turn to the stocks of growth, gold, and bitcoin as a fence against inflation and fiscal stress.
Bitcoin’s $ 2.5 trillion capitalization remains a modest relative -child at $ 26 trillion of gold and the S&P 500 to $ 57 trillion. Thus, even Bitcoin absorbs less than 3% of $ 7.37 trillion Sitting in the money marketA $ 200 billion flow can be meaningful to move the price direction.
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