In a recent Twitter thread, Chill|TheResponsibleDΞGΞN (@ChillTRD) has presented a compelling case for the impending arrival of Bitcoin’s most substantial bull market. At the heart of his analysis are two critical factors poised to reshape the cryptocurrency landscape 2023: the Debt Crisis and Rising Interest Rates.
US Debt Reaches All-Time High – A Cause for Concern
During the tumultuous Global Financial Crisis 2008, central banks worldwide took a momentous step by reducing interest rates to zero. This move allowed individuals and organizations to manage their debts more affordably. However, it effectively shifted the burden of unmanageable debt onto the Federal Reserve’s balance sheet, where it remained rather than disappearing. This action played a pivotal role in rescuing the global economy.
Due to this policy, governments and corporations gained the opportunity to refinance their obligations, primarily within a 3-5-year timeframe. This, in turn, gave rise to a recurring economic cycle spanning 3.5 to 5 years.
When the interest on this debt comes due, it often leads to an economic slowdown, compelling central banks to lower interest rates—an almost inevitable pattern.
More recently, the world witnessed an unprecedented monetary printing spree by the Federal Reserve during the COVID pandemic. This resulted in trillions of dollars in interest payments now due in the fourth quarter of this year.
Failure to meet these payments could potentially trigger an economic disaster, leaving policymakers with no alternative but to print more money and devalue the currency—a drastic move that could send the crypto market soaring to new heights.
Fed’s Urgent Need for New Debt Issuance Spells Historically Low-interest Rates
With current payments deemed unaffordable, massive rate cuts loom on the horizon. This impending development carries far-reaching implications for the cryptocurrency market.
If you were amazed by the crypto market’s performance in 2021, prepare for what’s on the horizon. The convergence of these unstoppable forces—rate cuts and USD devaluation—is poised to usher in the most significant crypto bull market ever.
These forces are beyond our control, and the prudent choice is to prepare for the opportunities they will bring. Now is the time to strategically position yourself to maximize your returns.
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