Once the balance sheet has reached ample reserves, he told attendees at the European Bank Conference, “it will then be time to begin the process of gradual purchases of assets,” hinting that bond purchases could resume to support market stability.
“You just need to get through the Window of Pain and The Liquidity Flood lies ahead.”
China now leads the pack with $47 trillion, followed by the EU and U.S. at $22.3 trillion and $22.2 trillion, respectively. In other words?
“Money supply is through the roof.”
That’s a compounded annual growth rate of 7.0%, and a flood of potential capital hunting yield and shelter from currency debasement.
When liquidity surges like this, it doesn’t slosh evenly; risk assets, hard assets, and new money narratives become magnets for global flows. Bitcoin, notoriously volatile but increasingly institutionalized, looks better positioned than ever to absorb the next reallocation wave, especially as bond yields compress and traditional assets stagnate.
“This bull phase in BTC and crypto ends when no one thinks it’s ending (ie not now)… Bad price action is supposed to shake weak hands. Mkts 101.”
He’s not alone in this perspective. Even with frustrating tape and sentiment-charged exits, the structural story of money supply through the roof, and central banks flashing pivot, looks like the perfect setup for another speculative surge.
In fact, the most dangerous time for new capital chasing yield is often when the crowd is convinced the run is already over.
With the NY Fed ready to roll out QE once more and global liquidity showing no sign of slowing, the conditions are ripening for another rally in Bitcoin and crypto.
Weak hands may wobble, but as seasoned macro voices note, real bull phases end in euphoria, not despair. Money pouring into the system must find a home, and the sequence of the global money supply flows may soon ignite the next big leg up in digital assets.
