It’s The Liquidity, Stupid

It’s The Liquidity, Stupid
фото показано с : bitcoinmagazine.com

2021-6-24 15:00

In an environment of unprecedented credit expansion, bitcoin is the only asset that is 100% monetary premium, 0% anything else.

The below is an excerpt from a recent edition of the Deep Dive, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

Yesterday, the Nasdaq hit a record high, with the index up 67.5% since the start of 2020, and up a whopping 147% from the March 2020 bottom.

Casual onlookers may question what has made companies inside the index 67.5% more valuable over the last 18 months, or what has caused the mass belief in “stocks only go up!”

In short, the answer is simple. It’s the liquidity, stupid!

While that may come off as quite blunt and oversimplified for what many would ascribe a very complex and nuanced answer, any such explanations for the massive increases in the prices of bonds, equities, and real estate over the last 18 months should be approached with Occam’s Razor.

QQQ, DJI, SPY and M2 Money Stock 

By observing another similar chart, of global liquidity and the S&P 500 index from Holger Zschaepitz, it becomes clear that equity markets predominantly are not soaring as a result of improved business outlook or a massive increase in earnings, but rather are quite simply a proxy of global liquidity, which has risen at record-breaking pace as a result of central bank quantitative easing programs globally.

Global lLiquidity and the S&P 500

It is important to keep the long view in mind, even with bitcoin in the midst of an over 50% retracement from the all-time high set in the middle of April 2021.

The performance of every asset class is a function of central bank liquidity, and in an environment of unprecedented credit expansion, bitcoin is the only asset that is 100% monetary premium, 0% anything else.

The supply of bitcoin cannot be diluted or “managed” by a team of central planners, and new supply of the monetary asset is created through the proof-of-work mechanism built into the protocol.

Contrast this to new units of fiat currency, which are “created” through commercial bank lending.

In this unprecedented monetary environment, where all assets are rising in tandem, it’s vital to remember:

It’s the liquidity, stupid.

Protect yourself with bitcoin.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Dix Asset (DIX) на Currencies.ru

$ 1.0E-7 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $1.0E-7 - H: $1.0E-7
Капитализация $11.516k Rank 99999
Доступно / Всего 100b DIX

asset only 100 monetary else anything premium

asset only → Результатов: 126


With $1M Worth of Funding, KnitFinance Charges Ahead to Unlock Trillion Dollar Market in DeFi

KnitFinance’s objective is to enable DeFi on Multiple chains which is limited to only two at present and to reduce entry barriers and asset risk for potential users. The platform has been designed to achieve the same with an architecture that is completely decentralized and is solely dependent on user consensus for governance. Its the […]

2021-5-6 18:00


With $1M Worth of Funding, KnitFinance Charges Ahead to Unlock Trillion Dollar Market in DeFi

KnitFinance’s objective is to enable DeFi on Multiple chains which is limited to only two at present and to reduce entry barriers and asset risk for potential users. The platform has been designed to achieve the same with an architecture that is completely decentralized and is solely dependent on user consensus for governance. Its the […]

2021-5-6 17:00


Фото:

Economist Says Bitcoin Isn’t Too Big to Fail — Warns BTC Can Only Establish Itself if Governments Allow It

Allianz’s chief economic advisor Mohamed El-Erian says that bitcoin is not too big to fail and that governments may intervene. While he believes that cryptocurrency will grow in popularity, the economist says “it takes away a lot from governments,” adding that this asset “can only establish itself if governments allow it to.” Economist Warns of […]

2021-4-8 00:30


Фото:

BNY Mellon Report Compares Bitcoin and Gold, Study Says ‘Gold Is the Only Globally Accepted Currency’

The popular safe-haven asset gold recently posted the lowest settlement in three weeks, as a firm dollar and bond market yields have weakened support for the precious metal. The financial goliath BNY Mellon also published a report about the differences between gold and bitcoin and the study said that the crypto asset “fits the description […]

2021-4-1 03:30


Фото:

Satoshi Nakamoto could claim the title of world’s richest man should Bitcoin perform as predicted

The creator of the first and most valued cryptocurrency has been awarded many titles, thanks to the impact of his groundbreaking digital asset. Satoshi Nakamoto, whose identity is still unknown and has been debated amongst cryptocurrency users for years, has been praised for inventing a new system of wealth storage that doesn’t only prioritize transparency […]

2021-1-10 16:19


Google Trend Sentiment Breaks Down, Will Bitcoin Follow?

Bitcoin is above $40,000, after starting the new year below $30,000, and less than one year ago trading at under $4,000. The asset’s trajectory has been “only up” but could Google search trends for the first-ever cryptocurrency breaking down be a sign that the bullish uptrend will soon as well? The Unstoppable Bitcoin Bull Run That’s Trending All Over The World The world is in awe watching the latest Bitcoin rally unfold. Soaring from under […]

2021-1-9 18:50