What is most important in the market recently is not interest rate cuts, but the Federal Reserve restarting balance sheet expansion —
Buying $40-45 billion of Treasury bonds each month, starting from 2026, will reinject into the financial system.
Many people's first reaction upon seeing this news is confusion:
> "How can the market rise when builders are going bankrupt, the real economy is weak, and unemployment is soaring? With the economy like this, how is there still room for asset prices?"
This is the era contradiction we are currently in:
The harder the people suffer, the easier it is for the capital market to be pushed up.
The Federal Reserve is not expanding its balance sheet because of economic health,
but because the reserves within the financial system are approaching a 'danger line',
Short-term interest rates frequently jump out of the upper edge of the corridor, indicating that bank liquidity is drying up.
In the modern monetary system, this is not a multiple-choice question.
This is inevitable.
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The only thing the central bank can do is print money
Expanding the balance sheet does not save the economy, but saves the financial system itself.
Banks need reserves.
The repo market needs dollars.
Short-term interest rates cannot go out of control.
The U.S. government needs a cheap financing environment to maintain massive debt.
In this context,
Interest rate cuts and balance sheet expansion are a chain reaction—not to stimulate the economy, but to prevent the system from collapsing.
Thus, we see the most ironic phenomenon in history being replayed:
Physical bankruptcies
People are getting poorer
Expenditure shrinks
Corporate layoffs
Life is getting harder
But as long as the Federal Reserve reopens liquidity,
The market has reasons to rise again.
The reason is simple:
> The market is not determined by "everyone's life,"
The market is determined by the "size of liquidity."
This is something that those who truly understand the market will eventually see clearly.
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"Poor economy → Market decline" is the logic of life
"Poor economy → Central bank prints money → Liquidity expansion → Market rises" is the logic of capital
These two are completely two different worlds.
What we see in life is full of pressure:
Salaries cannot keep up with prices, companies are going bankrupt, young people cannot afford houses, and the social atmosphere is conservative and pessimistic.
But the market does not look at life,
What the market sees is:
Whether liquidity increases
Whether funds are flowing back to the asset side
Do large institutions need risky assets to combat currency devaluation?
What does it mean when the Federal Reserve announces balance sheet expansion?
Means that:
> Currency needs to be diluted once again.
Funds need to be borrowed from the future to invest in the present.
The purchasing power of the dollar will decline again.
And asset prices will become the only container to resist dilution.
This is why you feel, "Everyone is struggling, how can the market possibly rise again?"
Because the market has never been designed for "everyone."
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What is truly pushed forward is capital, not people
What we are experiencing is a long-term, irreversible phenomenon:
Fiat currency devaluation is a permanent trend
The scale of debt can never contract.
The only thing the government can do is continue to print money
The result of printing money is that assets inflate once again
And among all assets,
The only thing that will not be arbitrarily inflated,
It does not belong to any country's asset──
It's Bitcoin.
In this system, Bitcoin is not speculation, not a meme, and certainly not gambling.
It is an escape from the fiat currency cycle.
It is also the only "non-state asset" that ordinary people can possess.
In an environment where the Federal Reserve is expanding its balance sheet, BTC's status will not decline, but will only rise.
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This is not the hope of a bull market, this is the inevitability of the system
The more people suffer,
The government dares not tighten further,
The central bank prints money more and more,
The more liquidity is released,
Assets will continue to rise.
This is not a moral judgment,
This is the underlying law of capitalism.
> This is capitalism.
And in this system, Bitcoin is not a frenzy, but a logical necessity.
At the moment the Federal Reserve re-expands the balance sheet,
The game has restarted—
And the monetary system once again drives humanity towards an asset-based future.
