$BTC The bull market is starting! The Federal Reserve's faucet is finally going to be turned from 'sucking' back to 'pouring'!
One key point: The quantitative tightening (QT) that has lasted for years is officially over, and the door to interest rate cuts is creaking open. The pendulum of global liquidity is swinging from 'tightening' to 'easing'. This is not a prediction; it is a paradigm shift that is happening.
In simpler terms:
1. QT is over: This means the Federal Reserve will no longer 'suck' dollars out of the market. The biggest liquidity vacuum cleaner has been turned off.
2. Rate cuts are coming: This means the cost of using funds is about to decrease. The floodgates of the reservoir are getting ready to be raised again.
3. Cumulative effect: These two things together mean that global risk assets (stock markets, cryptocurrencies) will be simultaneously unshackled and handed a drink. Water always flows to the low ground.
Mickey's manure theory: When the captain managing the world's largest reservoir stops scooping water out and starts discussing the flow rate of opening the floodgates, all the 'dry land' waiting downstream will begin to stir. But remember, he will always first water his own son (the treasury market), and it will take time to reach you, possibly mixed with mud.
Risk warning: Don’t jump in thinking 'easing' is an immediate signal for skyrocketing prices. There is a gap between the policy shift and the widespread flooding of funds, filled with market expectations, economic data, and the repeated washout by the market makers. You may very well find yourself obliterated by the short-term fluctuations of the market at the clear 'early easing' stage.
Thank you for reading this far. Are you the vanguard who jumps into the river at the sound of the pump, or the fisherman who waits to see the direction of the water flow before casting the net?
I wish your positions can be the first boat to rise when the water level goes up, rather than a wooden stake still tied to the old dock.
(This article does not constitute investment advice.)
