Why did this round of Bitcoin and the entire cryptocurrency market surge so sharply?
Some people say it was Trump’s call-out, but that’s only a surface appearance. The underlying logic is actually this—In the short term, the U.S. needs to repurchase a large amount of Treasuries. As the yields on U.S. Treasuries fell, the massive short-term selling of U.S. Treasuries then flowed back into risk assets—represented by Bitcoin.
That’s the direct reason for the short-term price surge.
Looking ahead long-term, it will still require a long-term and continuous inflow of capital into the market to keep driving the overall market upward.
So where does the money come from?
It still has to come from interest-rate cuts. When there’s more money due to rate cuts, it will flow into the blockchain to keep buying Treasuries. Buying Treasuries is essentially just a simple stablecoin “investment/treasury management” play.
When you see more crypto opportunities and a good market trend, investors “act/come in” with stablecoins to buy coins. Then it becomes a positive upward feedback loop ♻️
This is the reason that supports continued upward momentum in the crypto market.#比特币创2023年3月来最佳周表现
Some people say it was Trump’s call-out, but that’s only a surface appearance. The underlying logic is actually this—In the short term, the U.S. needs to repurchase a large amount of Treasuries. As the yields on U.S. Treasuries fell, the massive short-term selling of U.S. Treasuries then flowed back into risk assets—represented by Bitcoin.
That’s the direct reason for the short-term price surge.
Looking ahead long-term, it will still require a long-term and continuous inflow of capital into the market to keep driving the overall market upward.
So where does the money come from?
It still has to come from interest-rate cuts. When there’s more money due to rate cuts, it will flow into the blockchain to keep buying Treasuries. Buying Treasuries is essentially just a simple stablecoin “investment/treasury management” play.
When you see more crypto opportunities and a good market trend, investors “act/come in” with stablecoins to buy coins. Then it becomes a positive upward feedback loop ♻️
This is the reason that supports continued upward momentum in the crypto market.#比特币创2023年3月来最佳周表现