🚹 The Fed is blowing the biggest bubble Rate cuts, rising balance and deficit will inflate USD 20% The only way to preserve your wealth is Bitcoin or Gold Here’s full breakdown and what it means for cryptođŸ‘‡đŸ§”
The Fed is inflating the bubble again and capital is flowing into Bitcoin and gold Ray Dalio sees this as the beginning of a new cycle of debt monetization QT ends, QE returns - officially a technical measure, right? But in reality, it's a soft policy during a market overheating Let me explain
Signs of this cycle are classic for the final stage of the debt spiral: - Trillions in government debt growth - Shortening of borrowing maturities - Expansion of the Fed’s balance sheet - Ignoring inflation for the sake of stability What does this mean for crypto? The liquidity window is reopening again
Powell says directly: “reserves should gradually increase” In other words, the Fed is quietly pumping money into the system And this is happening when the economy is not yet in recession, you see? This is classic late-phase policy - stimulus during a bubble
The economy looks stable: - Unemployment ~4% - Indexes near all-time highs - Inflation above target This is not “QE for rescue” - this is QE to support an overheated market For crypto - it means risk assets are back in focus
The Fed is no longer fighting inflation - it’s fighting the lack of debt buyers Foreigners are out, banks are overloaded, the private sector has no savings The only way out is to print and buy its own bonds When the Fed becomes the main buyer, liquidity flows into the market
Remember how previous QE episodes looked: 1933 - The Great Depression 2008 - Financial crisis 2020 - COVID shock Now it's 2025 - no crisis, but a tech bubble
This QE is stimulating not the labor market, but speculation Capital flows where there is scarcity and rapid growth Gold, Bitcoin, infrastructure tokens - everything that can’t be printed or mined easily In such cycles they become the main beneficiaries
When real rates fall - the market comes alive Liquidity rises, capital seeks profit in risky assets QE lifts prices and compresses the risk-safety spread Especially into supply-capped assets like $BTC and $ETH
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