Chainfeeds Guide:
Cryptocurrencies must go beyond a single asset to truly impact the entire financial market.
Article Source:
https://www.techflowpost.com/article/detail_26135.html
Article Author:
TechFlow
Perspective:
Mike Novogratz: Since Larry Fink started investing in Bitcoin, we have been working together to drive the market's development. Initially, it was like a snowball slowly rolling down a hill, gradually growing larger. Later, this snowball reached the mountaintop and stayed there for a while, and now it has begun to accelerate downhill, unstoppably. This snowball refers to Bitcoin's adoption rate - more and more people are beginning to accept and use it. Larry played a very important role in this process. Now you see sovereign wealth funds, ordinary equity investors joining in, and many companies like MicroStrategy launching related products. Ordinary investors and institutions are also actively participating. This trend makes me feel that Bitcoin market growth has entered an irreversible phase. If we can stabilize at the price range of 106,107 dollars for 3 to 4 days, we can further open up upward space and enter a new phase of price discovery. Why is this happening? First, due to increased adoption; second, you can look at the US fiscal situation, where this year's budget deficit will be higher than last year, which is something many did not anticipate. I appreciate Scott Bessent's work, he is indeed excellent, but he once promised us that the budget deficit would be controlled at 3%, which is clearly far beyond expectations now. The US dollar as a global reserve currency is facing enormous pressure. It's difficult to accuse other countries of lying and stealing while simultaneously requesting they continue supporting the dollar, or even become completely dependent on it or become a US subsidiary. Such contradictory attitudes are undermining the dollar's international status, both in terms of credibility and as an economic tool. When the dollar depreciates, the value of other assets naturally rises. Therefore, part of this reflects market pessimism about the dollar, and another part reflects concerns about global fiscal stability. For instance, Japanese long-term bond prices have already seen a significant drop, and today US long-term bond yields have fallen below 5%. When investors lose confidence in G10 countries' bond markets, they seek other assets for hedging. Thus, gold, silver, large-cap stocks, and commodities have become popular choices. Now, Bitcoin is viewed as "digital gold" and has joined this list. The Federal Reserve has remained restrained in this regard. You can see from Powell's press conferences that he is unwilling to directly intervene in the market. Besant might use his authority to promote long-term bond purchases, but Powell will not proactively announce such a measure, as it is not within his scope of responsibility. This situation is entirely caused by current government policies. If Powell believes market stability is threatened, or inflation and employment targets are impacted, he might take action. But his responsibility is dual - to focus on market stability and consider economic growth. So, if the bond market truly experiences severe turbulence, I believe the government will convene an emergency meeting internally to try to find solutions. Historically, in similar situations, Liz Truss was ultimately forced to resign in the UK. But the US does not have a parliamentary system, and removing a president is not easy. However, the US has a mechanism to adjust presidential policies, such as modifying tariff agreements. In US history, no president has been able to compete with the bond market - the bond market is the true giant controlling the situation.
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