Deflation poses a far greater threat than inflation ever did—markets have been calling this wrong. The real pressure is mounting for central banks to cut rates aggressively right now. When monetary policy tightens excessively, it doesn't just squeeze traditional finance; it cascades through crypto valuations too. Current conditions suggest we're pricing in the wrong tail risk, and policy makers need to act before deflationary spirals take hold.
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Deflation poses a far greater threat than inflation ever did—markets have been calling this wrong. The real pressure is mounting for central banks to cut rates aggressively right now. When monetary policy tightens excessively, it doesn't just squeeze traditional finance; it cascades through crypto valuations too. Current conditions suggest we're pricing in the wrong tail risk, and policy makers need to act before deflationary spirals take hold.