Crypto Just Figured Out What Gold Has Been Telling Us
Crypto has just sent a major signal to investors.
That signal?
That a tsunami of liquidity is coming courtesy of another round of stimulus/ money printing by central banks.
Crypto is effectively a liquidity play. It has little if any real value and is primarily driven by speculative trading. As such it is extremely sensitive to changes in central bank policy which make money/ credit cheaper or more expensive for investors and the financial system.
Case in point, bitcoin exploded higher last year when the Fed finally began cutting rates with a 0.5% rate cut in August 2024. And from that point until early 2025 when the Fed formally paused its monetary easing, bitcoin DOUBLED in price. Again, we’re talking about a 100% gain in the span of six months.
Once the Fed changed course and stated it would no longer be cutting rates due to its concerns that the Trump administration’s proposed tariffs would be inflationary, bitcoin began to correct declining from $105,000 down to a low of $74,000. Here again, we see how sensitive crypto is to monetary policy/ liquidity. As soon as the Fed formally paused, bitcoin began to decline.
So, what is bitcoin telling us today?
Another round of liquidity is coming shortly. The crypto currency is once again exploding higher, challenging its former all-time highs. Ignore what the Fed is telling you, the financial system is SCREAMING that the Fed will have no choice but to print more money when push comes to shove.
And remember, the Fed is not the only central bank that will be printing money. The European Central Bank and the Bank of England are already easing. The Bank of Japan is not far behind as its financial system lurches towards deflation again. And China is on the verge of a deflationary death spiral that will require massive amounts of stimulus.
To again, a tsunami of liquidity is coming to the financial system. I know it. You know it. And bitcoin is already pricing it in.
So, what does this mean for stocks and investors?
THE lows are in. And while the markets as a whole should work their way higher, certain investments are poised for truly EXTRAORDINARY gains based on this unique environment. We detail three of them it in a Special Investment Report titled How to Profit a Inflation.
Normally this report is only available to our paying clients, but in light of what’s happening in the markets today, we are making just 99 copies available to the general public.
To pick up one of the remaining copies…
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research