📉 EXITING BITCOIN

hyperinflation or reducing inflation?

Friends, many do not understand how the current, excessive positivity in the markets will end; why the AI bubble and tech stocks are inflating; when it will be possible to start exiting Bitcoin, and so on.

🔤 Let's start from afar and take a look at the US macro-economy and the Fed's monetary policy actions. After all, macroeconomics is the first step in the hierarchy that determines the global direction of trends in the markets.

The Fed's restrained policy cycle has been going on for more than two years. But, at the same time, the necessary inflation targets of 2%-2.1% have not yet been achieved.

💵 After all, in 2020-21, a record amount of money was printed and injected into the economy. And more and more money has to be printed. Inflation, against this backdrop, is getting harder and harder to contain. Therefore, the Fed and those responsible for the stability of the dollar have to resort to unconventional solutions. And right now, they're trying to get out of that trap.

If they start lowering the key rate, injecting money into the economy without easing inflation, they will get hyperinflation of 10-15% in the next cycle, as it was 50 years ago. That is a smooth depreciation of the USD.

🔎 Why all these complicated words?

It's very simple. Let me give you a simple example. You have $100,000... and instead of buying a new car, you, seeing a great opportunity to earn money, carry this money into #BTC.😉 Naturally, you buy it at prices 50% more expensive than you could have done it half a year ago. And, you wait... Meanwhile, Powell is jubilant, because your money is no longer in the economy, but in a bubble... (the load on the economy is reduced).

And obviously, in a situation where it's time to pump new money into the economy to keep key industries from dying, you won't be allowed to get your money out with BTC at, say, $200,000. Why? So that you don't go and trigger the already double demand for autos. That's why they're putting you in there.

!The topic of the post is not a simple one. #Write2Earn‬