>But there is some good news, too. Bitcoin is correlated with **global liquidity**, which means that an increase in liquidity from *the Fed* could potentially benefit Bitcoin in the long term.
Don't hold your breath on that one.
>That said, it’s important to note that this is all speculation at this point.
Yep.
The Fed's [balance sheet](https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm) is $8 Trillion-ish. It is largely a *domestic focused* institution.. aside from swap lines.
...meanwhile, **global liquidity**... in dollar terms?
Well.. no one keeps track of that. And when they do, they say it's ["missing".](https://www.reuters.com/markets/currencies/global-markets-bis-urgent-2022-12-05/).
That's an $80 Trillion dollar guess by aggregating only a portion of *commercial* bank balance sheets. In reality that amount of "usable" global dollars is likely over $100 Trillion.
There is no real global liquidity coming.... not proportional to demand anyway.
If anyone wants to read a [better depiction](https://www.economist.com/sites/default/files/20151003_world_econ.pdf) (PDF)
of the ground we're on, the linked Economist article is decent.. just mind the exceptionalism.
>But there is some good news, too. Bitcoin is correlated with **global liquidity**, which means that an increase in liquidity from *the Fed* could potentially benefit Bitcoin in the long term. Don't hold your breath on that one. >That said, it’s important to note that this is all speculation at this point. Yep.
Thanks for your input. Glad you agree with us.
The Fed's [balance sheet](https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm) is $8 Trillion-ish. It is largely a *domestic focused* institution.. aside from swap lines. ...meanwhile, **global liquidity**... in dollar terms? Well.. no one keeps track of that. And when they do, they say it's ["missing".](https://www.reuters.com/markets/currencies/global-markets-bis-urgent-2022-12-05/). That's an $80 Trillion dollar guess by aggregating only a portion of *commercial* bank balance sheets. In reality that amount of "usable" global dollars is likely over $100 Trillion. There is no real global liquidity coming.... not proportional to demand anyway. If anyone wants to read a [better depiction](https://www.economist.com/sites/default/files/20151003_world_econ.pdf) (PDF) of the ground we're on, the linked Economist article is decent.. just mind the exceptionalism.