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The wave of 10 trillion USD stablecoins is coming, and Bitcoin may hit 1 million dollars.
A trillion liquidity surge is coming, and Bitcoin will soar like a rocket.
Stablecoins are becoming the new darling of the financial markets. Recently, there has been a significant shift in the attitude of regulatory agencies towards stablecoins, and there are deep-seated reasons behind this.
In retrospect, the Federal Reserve bought bonds through quantitative easing policies, allowing the government to borrow at low costs and boosting the stock market. But now the Federal Reserve has to show a stance against inflation, and the Treasury can only bear the heavy burden alone.
Faced with a huge deficit and maturing debt, the current Treasury Secretary needs to find trillions of dollars to purchase government bonds under high prices and low yields. This is the fundamental reason why regulators have dramatically changed their stance on stablecoins.
By issuing stablecoins, large banks could unleash up to $6.8 trillion in government bond purchasing power. These dormant deposits can be re-leveraged in the financial system, thereby driving the market upward.
Additionally, if the Federal Reserve stops paying interest on reserves, it could further release $3.3 trillion for the purchase of Treasury bonds. Overall, there could be $10.1 trillion flowing into the short-term Treasury bond market in the future.
This massive liquidity injection will have a significant impact on risk assets, driving the market to "soar". Bitcoin is likely to rise to $1 million before 2028, and the Nasdaq 100 index may also surge to 100,000 points.
For investors, don't wait any longer for the Federal Reserve to cut interest rates or restart quantitative easing. The real opportunity lies in seizing the wave of liquidity brought by stablecoins, going long on Bitcoin and large bank stocks. The liquidity surge is about to arrive, seize the opportunity, and don't let yourself become a passive bystander.