Is It Too Late to Buy Bitcoin? Wall Street Is Joining the ‘Debasement Trade’

Market Trends & Investment Opportunities - The debasement trade, where scarce assets like Bitcoin and gold appreciate against depreciating fiat currencies, is becoming mainstream as institutions recognize it [1][3] - Investors should own assets that will appreciate in value as the prices of goods are inflating [8] - Gold has seen a spike due to central bank buying as they seek assets that cannot be debased [14] - Bitcoin benefits from liquidity as cheaper dollars require more of them to buy Bitcoin [18] - Bitcoin is entering a tremendous institutional adoption phase and is viewed as digital gold [21] Macroeconomic Factors & Risks - The US is running over $2 trillion deficits annually, with debt exploding to over $38 trillion this year [4] - The US faces a debt spiral with three choices: cutting spending, raising taxes, or defaulting (hard or soft) [6][7][8] - The Fed is lowering rates into a period of structural inflation, fearing a recession and potential explosion of deficits to $3-4 trillion [8] - Credit agencies have downgraded US debt, indicating structural problems [8] - The market is concerned that the Fed will have to stop QT (Quantitative Tightening) and eventually start QE (Quantitative Easing) due to decreasing bank reserves [8][9] Bitcoin Outlook - Bitcoin is expected to outperform gold in the future and take market share away from it [22] - Bitcoin could fall with a market drawdown, as it is still treated as a risk asset [27] - Bitcoin is expected to snap back strongly after a market drawdown, especially with an injection of liquidity [29] - In the next 5-7 years, Bitcoin could reach $1 million, with higher prices depending on the rate of currency debasement and institutional adoption [39]