Bitcoin breaks through $124,000, surpassing Google to become the fifth largest globally, a figure that acts like a shot of adrenaline for the entire crypto world. But behind this revelry, $400 billion in liquidity is quietly drying up. The yield on Japan's 10-year government bonds has soared to its highest level since 2008; this overlooked signal may be more alarming than Bitcoin's new high.
Institutions hold 770,000 bitcoins without budging, while retail investors are panic selling. This extreme divergence reveals a harsh truth: when liquidity recedes, the first to be caught naked are always the undisciplined speculators. History tells us that every seemingly unbreakable bull market will reveal its fragile nature at the moment liquidity dries up.
The coexistence of Bitcoin's strength and the liquidity crisis resembles Schrödinger's cat—before the box is opened, no one knows if this is the beginning of a new era or the prelude to a bubble burst. But one thing is certain: in this $124,000 feast, the real winners have already begun to stockpile ammunition for the liquidity winter. The market never lacks miracles; what it lacks is the wisdom to exit gracefully before the miracles collapse.
