Crypto Prices Could Benefit from U.S. Economic Slowdown, Says Macquarie

Concerns over a slowing U.S. economy have weighed on risk assets, but Macquarie analysts suggest this could ultimately boost crypto prices as lower interest rates become more likely. According to their latest report, crypto thrives in volatile macro conditions, and any economic slowdown could drive rates lower, benefiting Bitcoin and other digital assets.

Macquarie’s outlook comes as Bitcoin miners reported stronger-than-expected Q4 2024 earnings, fueled by Bitcoin’s resilience. Several mining firms are also accelerating their expansion into artificial intelligence (AI) and high-performance computing (HPC) to diversify revenue streams.

Core Scientific Inc. (NASDAQ: CORZ) has 70 MW of critical IT load available and is in discussions with enterprise clients. Cipher Mining Inc. (NASDAQ: CIFR) and Riot Platforms (NASDAQ: RIOT) are also actively pursuing AI and HPC opportunities. Riot, in particular, has paused its Corsicana Phase II mining expansion to focus on these initiatives, leaving 600MW of idle capacity available.

Despite recent Bitcoin price volatility, Macquarie remains bullish on the mining sector, maintaining outperform ratings for covered firms. Analysts highlight cost discipline and the strategic shift toward AI and HPC as key factors supporting long-term growth.

As crypto markets respond to macroeconomic trends, a potential Fed pivot toward lower rates could serve as a catalyst for Bitcoin and mining stocks, reinforcing their value in a shifting financial landscape.