AI-driven market models now link a global liquidity shift to Bitcoin’s latest price surge, as renewed capital flows into crypto signal rising risk appetite and growing institutional interest.
As political appointees steer monetary policy and expand the money supply, investors are turning to non-political hedges like Bitcoin, seeking protection from partisan risk and inflation.
BitMEX co-founder Arthur Hayes argues the era of easy money persists, saying global liquidity will keep flowing-and with it, Bitcoin’s rally. He flags macro catalysts and risks as BTC navigates policy shifts.
The Cantillon Effect shows how newly created money favors those closest to its source, inflating asset prices and widening wealth gaps. Learning this helps explain monetary policy’s role in inequality.
The finite supply of Satoshi units, the smallest divisible units of Bitcoin, has significant implications for the monetary system. By setting a maximum limit, it establishes scarcity, contributing to Bitcoin’s perceived value. Unlike fiat currencies, which can be printed indefinitely, the fixed supply limits the inflation rate, creating a sense of security and stability for holders. Additionally, the finiteness of Satoshi units influences the scalability and efficiency of Bitcoin transactions. As the network matures, smaller transactions will become necessary, which could potentially strain the system. The study of Satoshi units’ finiteness is crucial for understanding and maintaining the integrity of Bitcoin’s monetary system.
Quantitative easing is an unconventional monetary policy employed by central banks to stimulate economic growth. It involves the purchase of government bonds and other financial assets, which pumps money into the economy and lowers interest rates.