Yesterday, the third-ranking official of the Federal Reserve once again voiced support for further interest rate cuts, clearly stating that they would rather protect employment than fear inflation.
This actually indicates one issue: the U.S. economic growth is entering a phase of 'employment first.' Meanwhile, the wave of artificial intelligence is quickly replacing human jobs, from writing, design to customer service and operations, many industries are experiencing job erosion, and the pressure on employment will only increase in the future.
In this global context, the main theme for various countries will be interest rate cuts and easing. The People's Bank of China has recently also signaled that it will 'cut reserve requirements and interest rates at the right time' based on economic conditions. Furthermore, in 2025, it will officially adjust its monetary policy tone to 'moderately easing,' marking the first time since 2011. There’s really no other choice — the housing market has locked up liquidity, residents are under heavy burdens, consumption is weak, and prices continue to run at low levels; without easing, we can only wait for the economy to continue to decline.
In this context, Bitcoin is undoubtedly the biggest beneficiary. Global monetary easing is causing a flood of funds, while Bitcoin is naturally scarce and can hedge against inflation.
Logically, it’s only a matter of time before BTC rises to $150,000. More importantly, on-chain data has shown that Bitcoin is continuously flowing out of exchanges — this means more funds are choosing to hold long-term rather than sell short-term.
After writing this, I am also preparing to increase my BTC position by 3%. Not much, but enough to raise my average cost. As for altcoins, the old rule still applies: keep it under 10%, better to miss out than to overinvest. At this stage, stability is more important than aggressiveness.
If you currently don’t know which cryptocurrency to open a position in, see me in the chat room 😁😁
