Macro analyst 'Guy' from Coin Bureau argues that the US Federal Reserve is trapped. They may talk tough about fighting price hikes, but the reality of the US government's massive debt means they will be forced to flood the market with cash in 2026. This coming "liquidity flood" is expected to send assets like crypto soaring in a phenomenon called the "Everything Code."
Key Points Explained Simply
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The Debt Time Bomb: The US government has an $18 trillion problem, as that much debt needs new financing in 2025 and 2026. Since the interest rates are now much higher, the US will soon spend over $1 trillion a year just to pay the interest, which is more than the defense budget.
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The Only Way Out is to Print: The government cannot afford to refinance this huge debt at high rates like 5%. To prevent an internal crisis, the Federal Reserve will be forced to lower rates and print money, whether they call it "Quantitative Easing" or something else.
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Crypto is the Most Sensitive Asset: Bitcoin's price historically moves hand in hand with the total amount of cash flowing in the global economy. With other countries like China already increasing their money supply, the stage is set for Bitcoin to benefit the most from this worldwide liquidity wave.
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The New Fed Chief Factor: Current Fed Chair Jerome Powell's term ends in May 2026. The likely replacement, Kevin Hasset, is known to favor aggressively cutting interest rates, meaning the market is already betting on an "easy money" policy to start soon.
The Takeaway
The core choice for the US government is between inflation and default, and history shows they always choose inflation. If you believe this is true, the long-term outlook for scarce assets like Bitcoin is very clear: liquidity is coming, and investors should position themselves now and be patient for the major rally that is likely coming in 2026.
