Financial markets are just that interesting—extremes eventually reverse.

Rate hikes = “releasing water.” With a 40 trillion yuan bond increase raising interest rates, those bondholders are effectively paid an enormous amount of interest income; meanwhile, the real money supply in the market is pushed higher by this massive interest payment.

The Federal Reserve tries to curb inflation and squeeze liquidity through rate hikes, but under high debt, the interest paid on those hikes directly turns into fiscal injection into the market. The more aggressive the rate hikes, the more cash flow the market receives from interest—so that what looks like contraction in effect reverses into expansion.

Rate hikes can’t suppress BTC and gold.
High interest rates = fiscal deficits getting out of control = future currency depreciation.

$BTC #美联储SEP预计2026利率4.1%