The story of $BTC begins with Economics 101.
How did that round of high inflation after the war come about? Excessive money supply. How did it end? The central bank reduced its balance sheet. What was the result? The economy was directly crashed. Once realized, the only option was to reverse the operation—restart the printing press. This vicious cycle has long been documented in textbooks.
Now in 2024, the script is as precise as copy-paste. First, there was fiscal tightening, and in a market environment already sensitive to liquidity, a leading central bank was still desperately reducing its balance sheet. Now it suddenly announces a shift to expanding the balance sheet. One hand is forced by the contradictions of the system.
The problem is that the entire elite class on Wall Street is self-medicating. The narrative they weave is beautiful, but that printing press has already started to rumble—yet no one dares to face it directly.
On one side, liquidity is flooding back, how will crypto assets perform on the other? History never repeats itself, but it always likes to rhyme. Assets like $ETH and $BTC happen to be the most sensitive barometers during liquidity cycles. When fiat currency is diluted, people will always look for new value anchors.
Looking back ten years from now, the absurdity of the decisions made during this time will be exposed more thoroughly. Wall Street has once again bet in the wrong direction. The logic of trading is very simple—follow the liquidity, don’t follow the narrative. $BTC
