The Milk Road Show

Michael Howell's Liquidity Framework: Why Bitcoin Is Winning & Will Keep Winning

20 snips
Apr 30, 2025
Guest
Michael Howell
Michael Howell, CEO of CrossBorder Capital, shares his keen insights on liquidity's role in Bitcoin's success. He argues that Bitcoin's rise isn't just about media hype but is fundamentally linked to global liquidity cycles. The discussion dives into the intricate relationship between debt, inflation, and asset attractiveness, particularly highlighting gold and Bitcoin as inflation hedges. Howell also examines how geopolitical factors influence investment strategies and speculates on Bitcoin's bright future in an evolving economic landscape.
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INSIGHT

Liquidity Governs Market Cycles

  • Liquidity is the key driver of global markets, governed by the need to refinance debt about every 5-6 years.
  • Gold and Bitcoin perform well as monetary inflation hedges when debt and liquidity expand.
INSIGHT

Fed Liquidity Temporary, Risks Loom

  • The Fed's current liquidity injections are temporary and artificial, boosted by the debt ceiling and Treasury account dynamics.
  • A recession or economic slowdown could cause credit market tensions, causing volatility and refinancing difficulties.
INSIGHT

Repo Market Drives Credit Liquidity

  • The repo market is the heartbeat of global credit, relying heavily on collateral, mostly US Treasuries.
  • Rising volatility and private debt risk increase refinancing difficulties, threatening financial stability.
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