1/9 Precious Metals: It stinks more than you think, Let's stop & think for a minute. What was happening in markets? From Feb 21st the Nasdaq was already in trouble while the Precious Metals Gold and Silver were ramping. D-I-V-E-R-G-E-N-C-E @DerivativesDon

2/9 We have notorious velocity problems with an insolvent Fed, and a quasi fiscal deficit. Meaning that the Fed has to pay Banks for not using reserves. IORB.. That's a sterilization short-term but inflationary long term. A QFD as explained by Rodriguez at the World Bank is a very nasty condition of sterilization costs documents1.worldbank.org/curated/en/465…

@GraphCall @DerivativesDon Interesting thread. Are you saying that the State is using BTC to absorb monetary inflation that could have gone into real economy?

@GraphCall @DerivativesDon This is an eloquent explanation on multiple fronts … thanks @GraphCall

@GraphCall @DerivativesDon I think you’re giving centralized controls a little too much credit. But hey, it’s an interesting theory and I appreciate you taking the time to lay it all out. I wish more people would back their theory with so much detail.

@GraphCall @DerivativesDon Excellent interpretation, thank you.

@GraphCall @DerivativesDon Very interesting.

@GraphCall @DerivativesDon Good job.

@GraphCall @DerivativesDon Interesting idea 👍 but like the water in flood, where do you think the G is aiming for all that liquidity to eventually end up? Can’t keep sloshing it around - the controls is fragile at best. Will break sooner than later?

@GraphCall @DerivativesDon @threadreaderapp unroll please

Incredibly interesting take...$BTC's resilience this week was baffling after correlating with risk assets for much of the past year - All I could figure is that the weak meme-coin hands went to the OG instead of comms, which I suppose are now for oldsters(?!). Of course, the jury is still out until we watch $BTC when the next shoe drops, but I'm increasingly liking this take as it bounces around the walls of the brain-box. Maybe that hundo peg is the magic number for the Feds? Thanks for sharing. @chamath @davidsacks

"BTC is non-inflationary liquidity decoy" It's not a decoy Bitcoin has a finite supply, so it absorbs inflation The price will inflate faster than everything else - that's where the inflation is going Bitcoin incentivizes delayed gratification When you adopt it, you experience deflation The people who hold Bitcoin will never sell their entire stack Bitcoin is doing what gold was designed to do, but better, because it's digital It has all the characteristics we need money to have But most people haven't figured it out

@GraphCall @DerivativesDon 💯👍

@GraphCall @KingKong9888 @DerivativesDon Thanks for this explanation. Makes perfect sense. I’ve always believed BTC was a govt sponsored (if not directly created) product. But I never made the non inflationary liquidity aborption connection. It’s an Occam’s Razor explanation.

@GraphCall @DerivativesDon So keep my silver? 😭

@GraphCall @DerivativesDon And therefore Bessent mumbling about BTC becoming a store of value. LOL

@GraphCall @DerivativesDon Probably true. Get everyone to dump money into crypto to prevent a sharp rise in precious metals. But now the futures markets/ETFs are being used to manipulate BTC just like the gold and silver markets. End game is near.

@GraphCall @DerivativesDon Absolutely agree with your input and stance on bitcoin acting as the liquidity decoy. Across crypto markets Bitcoin is the ONLY thing going up. Has never happened in prior cycles as usually consumers buy up cheaper coins as 2nd and 3rd order effects. Consumers are NOT here.

@GraphCall @DerivativesDon The point of this article is that even if money is concentrated in Bitcoin, it has little impact on inflation, so it may be a bait product.