Why Is the Market Rising—and Where Is It Heading?
Despite the Federal Reserve holding interest rates steady, the market is surging—contrary to many retail investors’ expectations. Billions in short positions are being wiped out as the market defies bearish sentiment.
The truth is, markets don’t move based on a single metric like the Fed’s rate decisions. Savvy institutional players understood early on that the recent dip was a buying opportunity. I, along with other professionals, remained fully allocated during the correction, anticipating this sharp rebound.
One key factor driving this rally is the global money supply. While the Fed hasn’t yet cut rates, central banks elsewhere are loosening policy. China has cut rates. The EU has followed suit. As a result, global M2 is expanding rapidly. This influx of liquidity needs a home—and historically, much of it flows into risk assets.
Bitcoin, having been the top-performing asset of the past decade, stands to benefit disproportionately. It’s only logical that a significant portion of this newly created capital will flow into BTC and other crypto assets.
Now, consider what happens when the Fed does start cutting—likely by June or July—and global trade stabilizes. The setup for risk assets becomes even more explosive.
A major leg higher in crypto and other risk-on markets is coming. Be prepared.
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