Yesterday, as soon as the US stock market opened, it surged upward, and BTC also took off—what’s the reason? The US officially hit the pause button on quantitative tightening.

To put it simply, Bitcoin is a thermometer for liquidity. As soon as QT stops, the price reacts immediately. This round of gains is more about sentiment running wild, with the market speculating whether the Fed is about to open the floodgates again. Even the news of rate hikes from Japan couldn't dampen this optimism.

But to be clear, until real, substantial liquidity returns, this looks more like a technical rebound. Looking for a full reversal? Still a long way to go.

Who will be the next Fed chair? Trump dropped a hint in his speech yesterday—he’ll announce the pick early next year. He even mentioned, “a certain potential candidate is here in the audience,” which was a pretty obvious nod to Hassett as the successor. The reason for waiting until next year to make it official is probably to allow enough time for the nomination and vetting process.

On the data side, there’s movement too: on December 1, the Fed conducted $13.5 billion in overnight repo operations, the largest since the pandemic in 2020 and even bigger than during the dot-com bubble burst in 2000. The signal that the market is being injected with liquidity is pretty clear.

Musk has been making statements again recently, mentioning that $38.3 trillion debt time bomb, and saying it could cause wild swings in Bitcoin’s price. His logic is interesting: “In the future, the concept of ‘money’ will disappear—energy will be the real hard currency. Bitcoin is based on energy, and you can’t just create energy out of thin air with a piece of legislation.”

He also predicted that within three years, AI will make the supply of goods and services… ( Interview content to be continued )