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  Cointelegraph analyst and writer Marcel Pechman breaks down consumer debt and why it might lead to a good outcome for BTC. 
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<div class="cointelegraph"> 
 <p>On the latest episode of <em>Macro Markets,</em>&nbsp;Cointelegraph analyst Marcel Pechman explains why United States consumption remains strong while auto-loan and credit card balance delinquency is accelerating. According to Pechman, <a rel="noopener noreferrer nofollow" title="consumer" href="https://thebittimes.com/tag/consumer.html">consumer</a>s built a cushion of extra cash savings as the U.S. government injected money to avoid a recession and temporarily forgave student loan repayments.</p> 
 <p>But, according to investment bank JPMorgan, “<a rel="noopener noreferrer nofollow" title="consumer" href="https://thebittimes.com/tag/consumer.html">consumer</a>s have spent down the entirety of their excess savings from the pandemic, which at one point totaled more than $2 trillion,” as reported by Business Insider. Pechman believes that if JPMorgan’s predictions are correct, the stock market should have been trading much lower. Still, Pechman doesn’t think that betting against the S&amp;P 500 is sound advice, given that inflation is right around the corner and the government will be forced to inject liquidity to avoid a recession.</p> 
 <p>For the show’s next topic, Pechman dissects the Chinese central bank’s intervention after the yuan hit a 16-year low against the U.S. dollar. For Pechman, the biggest risk is the market doubting the country’s ability to sustain a stronger yuan, meaning betting that the People’s Bank of China’s reserves won’t be enough to sustain the desired level.</p> 
 <p>In essence, what the Chinese central bank is doing has limits and ultimately is a risky bet, argues Pechman. For now, according to the analyst, there seems to be no imminent risk coming from the yuan, but it is worth keeping an eye on.</p> 
 <p>For further insights into these matters, tune in to the latest episode of <em>Macro Markets</em>, exclusively available on the newly launched Cointelegraph Markets &amp; Research YouTube channel.</p> 
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Does high US consumer debt benefit Bitcoin price?

TheBitTimes

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