FOMC Aftermath

Key Takeaways
- On Wednesday, the Fed reiterated intentions to further reduce bond purchases in February and ultimately cease bond-buying in March, with rate increases to follow sometime thereafter.
- Bitcoin’s correlation with tech stocks during this drawdown is characteristically different from 2018 and suggests that we are not headed for a similar crypto winter.
- GBTC discount to NAV reaches an ATH as it approaches 30% for the first time, presenting a potential opportunity for the patient investor.
- Increased crypto adoption in emerging markets might serve as a tailwind for Bitcoin this year.
- MVRV is at a level last seen in April 2020, when BTC was under $10,000.
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