Sven Henrich on the Fed’s debt trap and why it’s causing more harm than good

Episode 32 of Season 2 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Sven Henrich, founder of Northman Trader.

Listen below, and subscribe to The Scoop on AppleSpotifyGoogle PlayStitcher or wherever you listen to podcasts. Email feedback and revision requests to [email protected].

This episode of The Scoop is brought to you by Bitstamp, the original global cryptocurrency exchange. Since 2011, Bitstamp has been a cornerstone of the industry, earning the trust of over four million individuals and top financial institutions looking for a reliable trading venue.

Whether you’re trading on our web platform, mobile app or industry-leading APIs, Bitstamp gives you the professional-grade tools you need to execute your strategy. Download the Bitstamp app or visit to learn more and start trading today!


The age of the new day trader has come about at an uncertain time for the world and the markets, meaning downturns and upturns are fleeting. Sven Henrich, founder of NorthmanTrader, is an expert at reading the macro signs of the market. On this week's episode of The Scoop, he cautioned against continued interventions by the Federal Reserve that have kept the new generation of traders from a prolonged bear market.

"Everybody is trained to just not expect anything bad to last because we have the wonderful Fed fairies preventing any damage from happening," he said. "That's not how the world has worked for the last 500,000 years. Sometimes bad things happen, and that's the fantasy that we keep playing in this game of debt and intervention, thinking that it's all consequence free."

Henrich's firm provides macro views and technical analysis to its subscribers, and on Twitter, he's been highly critical of the Fed's actions in recent weeks. He's been raising the alarm of coming consequences due to what he sees as the central bank's refusal to take on any pain. On this week's episode, he broke down macro events in the time surrounding the COVID-19 pandemic, touching on:

  • Why continued market interventions could create stresses that investors might be overlooking in a strong tech market narrative
  • What the growing divergence between gold and tech stocks means for economic growth
  • Where to allocate capital as governments debase currencies and real interest rates drop
  • Why bitcoin isn't a hedge against the monetary side when you look at its price action
  • Why the next two months are critical for the strength of the dollar

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.