((Important for the coming period ))



7 trillion dollars is the approximate total value of Money Market Funds (MMFs) in the United States.
(Money Market Funds) used to invest these funds in short-term government bonds (T-Bills) with a 5% yield, but now with the Fed's announcement of the start of quantitative easing (QE) and the adoption of an interest rate reduction policy, the 5% yield will directly decrease in the coming period. With rising annual inflation, these 7 trillion dollars will start to erode and lose value compared to other assets due to inflation.
Therefore, they will move to traditional markets: real estate, stocks, and Bitcoin.
But you should know something important: these funds will not flow quickly and immediately. This money takes months and comes in stages. Also, the 7 trillion dollars does not move as a single unit from one portfolio; it comes from different portfolios with different goals, risks, and asset preferences.

But historically, there has been such accumulation and unloading of liquidity from short-term bonds and its movement to high-risk markets to preserve value against inflation when short-term bond yields decrease during periods like
(1998, 2003, 2009) and it was a main and primary driver for stock markets to reach strong historical highs.

I expect the liquidity flow will not be instantaneous. Expectations begin to play out in markets with rapid, successive, and large interest rate cuts. Here, the big rotation of a large part of this 7 trillion dollars begins, which will create a "liquidity tsunami for the markets" and will likely take from 6 to 12 months after the start of the rate-cutting cycle, accelerating with each additional cut.

And for the Fed to start aggressively accelerating cuts, it needs a crisis to respond to. That’s why I expect a market correction during 2026 to be quick, and the Fed's response will be fast—especially since the new Fed president is obedient to Trump and the liquidity is ready as I explained: 7 trillion, not counting new liquidity, and this 7 trillion is just one of the indirect quantitative easing drivers.

So in 2026, if you get a correction similar in intensity and speed to the tariff correction of April 2025, it will be a historic bottom for what comes next and an unrepeatable opportunity... $BTC #JoinGrowthPointsDrawToWiniPhone17
BTC-0.93%
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KEVINKevin Lee
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