Julien Bittel, head of macro research at Global Macro Investor, argued that the bull run remains in its early stages based on comprehensive economic indicators.
In a Sept. 8 analysis shared via X, Bittel counters widespread “peak cycle” sentiment in crypto markets, challenging late-cycle narratives by examining traditional economic markers.
Peak sentiment
Classic late-cycle economies typically feature extreme manufacturing sentiment with ISM readings around 60, elevated services sentiment, high homebuilder confidence, strong consumer and worker confidence, bullish investor sentiment, and accelerating wage growth.
Bittel said current data paints a different picture. When scoring inputs from ISM, NAHB, NFIB, BLS, AAII, and The Conference Board into a composite sentiment measure, US economic sentiment remains “very subdued” and far from euphoric late-cycle extremes.
He stated:
“This does not look like an above-trend late-cycle economy. It looks much more like an early-cycle economy trying to build momentum.”
Central bank policy provides additional support for this thesis. Nearly 90% of central banks globally are cutting rates, creating what Bittel describes as “extraordinary” conditions and “a massive tailwind for the business cycle” on a forward-looking basis.
Oil prices reinforce the early-cycle argument, trading nearly 20% below trend and continuing to fall. This represents easing financial conditions rather than the tightening typically associated with late-cycle dynamics.
Historically, oil prices running 50% above trend have signaled recession since the early 1970s.
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Bull cycle in early stages
Temporary Help Services data shows “early-cycle vibes” with rising growth from profoundly negative levels, indicating economic recovery rather than rollover.
According to Bittel, late-cycle periods typically feature positive year-on-year growth that’s slowing, reflecting an overheated economy losing steam.
He attributes rising unemployment to the lagging nature of jobs data, calling it “a six-month look in the rear-view mirror.”
Businesses first increase overtime hours and temporary workers before committing to expensive full-time hires with benefits and pensions.
Bittel also frames current conditions as “early-cycle” transitioning to “mid-cycle,” describing the progression as “Macro Spring” (growth up, inflation down), moving toward “Macro Summer” (growth up, inflation up).
He concluded that this macro perspective challenges the prevailing crypto market sentiment, which suggests that the bull cycle has peaked. Instead, he assessed that the current economic conditions support continued expansion rather than contraction.
