Speaking in an update to investors on his YouTube channel, Luke Gromen, founder of market research firm FFTT, says that while an inflationary wave is becoming more and more likely, there’s an “order of operations” that needs to be accounted for.
He compares the scenario to March 2020, when the market crash ended up justifying the stimulus that eventually caused explosive rallies in basically all risk assets.
Gromen said:
FAQ What is Luke Gromen warning about bitcoin and markets? Luke Gromen warns that an AI-driven deflation shock could trigger a sharp, COVID-style market sell-off before any liquidity-fueled rally. Why does Gromen compare this to March 2020? He says a sudden crash could justify massive stimulus, similar to how the 2020 capitulation preceded a historic bull market. How could bitcoin be affected in this scenario? Because bitcoin still trades like a high-beta tech asset, Gromen says it could see a steep drawdown before monetary easing begins. Does Gromen remain bullish long-term? Yes, he maintains high conviction that large-scale liquidity will eventually drive markets, including bitcoin, significantly higher.
