Core Viewpoint - The recent shift of the Federal Reserve towards a loose monetary policy has reignited discussions about Bitcoin as a hedge against the devaluation of fiat currencies, with its fixed supply cap of 21 million coins making it a potential inflation-resistant asset [1][7]. Group 1: Bitcoin's Unique Characteristics - Bitcoin's most notable feature is its fixed supply cap of 21 million tokens, enforced by its protocol and reinforced through periodic halving events, which reduce the issuance rate of new tokens by 50% approximately every four years [3]. - This scarcity sharply contrasts with fiat currencies, which can be infinitely expanded; for instance, during the 2020-2021 quantitative easing (QE) period, the U.S. money supply (M2) grew by over 25%, injecting trillions of dollars into the global market [3]. Group 2: Market Dynamics and Bitcoin's Price Movements - Bitcoin's price movements during the Federal Reserve's easing cycles reveal a nuanced relationship with monetary policy; for example, during the 2020-2021 QE phase, Bitcoin's price surged from under $10,000 to nearly $65,000, driven by liquidity injections and a weakening dollar [3][4]. - Following a 25 basis point rate cut by the Federal Reserve in September 2025, Bitcoin's price dropped by 4% within 24 hours, indicating market skepticism regarding the Fed's ability to balance inflation and employment [3]. Group 3: Investment Strategies and Tools - In a liquidity-sensitive market, investors require wallets that support rapid trading and flexible asset management; the XBIT Wallet by Bybit offers seamless fiat deposits and withdrawals, along with support for various mainstream cryptocurrency trading pairs [4][6]. - The XBIT Wallet also provides advanced risk management tools for institutional investors and high-net-worth individuals, including API trading integration and customized security settings, enabling users to make informed investment decisions amidst market volatility [6][9]. Group 4: Future Outlook for Bitcoin - The intersection of the Federal Reserve's easing cycle and Bitcoin's structural scarcity strengthens the argument for cryptocurrencies as liquidity-driven inflation hedges; as central banks continue to expand money supply, Bitcoin's role as a hedge against fiat currency devaluation may become increasingly significant [7]. - The evolving value of Bitcoin, characterized by its scarcity and liquidity sensitivity, positions it as a strategic asset for institutional investors, despite its inherent volatility [6].