Deflation, Doubt and Squeezes

As we continue to make our way through the second half of 2020, COVID-19 continues to propagate fear, uncertainty and doubt (“FUD”) throughout the world. The United States’ unemployment (see Figure 1) along with several other labour statistics have rebounded off of their March lows as the continuous lockdown of global economies, stemming from no other than the Leviathan’s response to the virus, is forcing structural deflationary pressures on the global economy.

Figure 1: United States Unemployment Rate. Source: Tradingeconomics.com
Figure 2: Total Assets Held By The ECB, BOJ, PBOC and Fed. Source: Yardeni.com
Figure 3: Federal Reserve Balance Sheet. Source: Fred.stlouisfed.org
Figure 4: Gold Futures Weekly Price Chart. Source: Tradingview.com
Figure 5: 10-Y Treasury Note Futures Weekly Price Chart. Source: Tradingview.com
Figure 6: Treasury Inflation Protected Securities (TIPS) Yields. Source: Bloomberg.com
Figure 7: Goldman Sachs Commodity Index Daily Price Chart. Source: Tradingview.com
Figure 8: Global Equity Markets Price Chart. Source: Tradingview.com
Figure 9: Digital Asset Markets Daily Price Chart. Source: Tradingview.com
Figure 10: Nasdaq Composite Weekly Price Chart. Source: Tradingview.com.
Figure 11: Bitcoin Price Chart. Source: Tradingview.com

BKCoin Capital LP is a New York-based digital asset quant hedge fund dedicated to delivering consistent uncorrelated absolute returns.

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