On this week’s episode of Macro Markets, Cryptox analyst Marcel Pechman discusses the real estate markets, highlighting stagnant mortgage demand, attributed to rising rates. With an average 30-year fixed-rate mortgage interest rate of 7.27%, refinancing and home purchase applications have dropped significantly.
Still, Pechman speculates that house prices might rise if inflation continues to grow. While some sellers may be distressed, real estate, especially urban residential, has historically been a reliable store of value. He concludes by highlighting that other investment options may not provide a safer haven in the current economic climate.
In the second segment, Pechman discusses Instacart’s initial public offering, which established its valuation at roughly $10 billion, significantly lower than its $39 billion peak valuation. This reflects the challenges faced by venture capitalists in the current economic climate. Pechman suggests a shift in investor metrics, emphasizing the need for a reliable store of value, where cryptocurrencies like Bitcoin (BTC) could play a role.
Pechman notes that not all cryptocurrencies seek growth through user bases and fees. Bitcoin can operate as a transparent reserve system for banks and nations, issuing Bitcoin-backed digital assets without requiring a billion users. This shift in perspective highlights the need for a reliable store of value. Unlike precious metals with auditing challenges, Bitcoin and cryptocurrencies can fill this role regardless of everyday user adoption.
For additional details and the complete analysis, check out the Cryptox YouTube channel.
