My thinking has actually remained unchanged—Bitcoin will ultimately become a reserve asset because the mess of U.S. debt cannot be repaid by the U.S. itself and can only be digested by the crypto market.
Two main paths to follow.
The first step is for Bitcoin to ascend to become a reserve asset, but this is just the first step. The U.S. government will definitely follow suit by launching its own 'official stablecoin', directly linked to U.S. Treasury bonds, effectively offloading the hole of U.S. debt onto the world. The second step is to drive up the prices of crypto assets; Bitcoin needs to surge to $1 million, and Ethereum must aim for tens of thousands of dollars. Want to buy BTC or ETH? Then you'll need to first convert to their stablecoin, which essentially serves as a 'disguise' for U.S. Treasury bonds. This means that global funds will indirectly take on U.S. debt. Will this inflate the bubble even more? Of course! But the U.S. has no other options now and can only tough it out.
Interest rate cuts are the big show; where will the funds run?
The Federal Reserve is currently overwhelmed by inflation, but they can’t wait to cut interest rates—who doesn’t want to pay less interest on borrowed money? Therefore, interest rate cuts are a done deal.
After interest rate cuts, where will the money go?
Currently, the Asian market (like Hong Kong stocks) is somewhat cautious with funds, but the growth potential is already limited; U.S. stocks are at a high point, and there isn’t much capital to attract. However, the crypto market is the real reservoir! With the U.S. continually easing policies towards the crypto space, market risks are reduced, and a massive influx of funds will surely pour into this field.
How to play?
Once this bull market takes off, it will definitely be crazier than the last one. Now is the perfect time to build positions in batches; holding core assets like BTC and ETH, along with some valuable coins that are at the best bottom, can maximize profits through strategic approaches.
To summarize.
1. Bitcoin first becomes a reserve asset → U.S. debt packaged as stablecoins → Prices of cryptocurrencies rise, with the world footing the bill. 2. Interest rate cuts lead to liquidity → Funds rush into the crypto space → Super bull market. 3. This is the last cycle where ordinary people can easily capitalize on the results.
Lastly, let me say something heartfelt: How did the 2017 bull market end? It collapsed suddenly when everyone thought it could still rise. The crypto market has gone through three cycles of bulls and bears, seen too many wealth myths, but more people left in silence after being harvested time and again. Remember, the market is never short of opportunities, but the crypto space is no longer an era of wild growth. If one person fights alone, how can they compete with the big players?
