What Bitcoin Did THE MONEY PRINTER IS COMING w/ James Lavish
19 snips
Feb 24, 2025 
In this engaging discussion, James Lavish, a macro investor and former hedge fund manager, dives deep into the intricacies of global liquidity cycles and the Federal Reserve's influence on market dynamics. He explores the implications of U.S. deficit spending and how it relates to Bitcoin’s perceived risk. Lavish shares insights on Bitcoin-backed bonds, investment strategies amid volatility, and the broader economic landscape shaped by fiscal policies. Tune in for an enlightening perspective on Bitcoin’s potential in a changing financial world.
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Global Liquidity and Bitcoin
- Global liquidity cycles, driven by factors like central bank actions, bank lending, and cross-border flows, impact asset prices.
- Bitcoin's price currently correlates with these cycles, showing a 2-3 month lag behind liquidity changes.
Bitcoin's Path to De-Correlation
- While Bitcoin is currently correlated with liquidity, this may change as it gains wider adoption and more non-speculative use cases.
- It will happen when Bitcoin starts taking market share from other major asset classes like bonds.
Saylor's Volatility Play
- Michael Saylor leveraged Bitcoin's volatility to MicroStrategy's advantage by issuing 0% interest convertible bonds.
- Hedge funds buy these bonds and short MicroStrategy stock to profit from volatility, creating a win-win.