#GateSquareMayTradingShare

Touch of a Butterfly

Heise dropped a new essay titled "The Butterfly Touch." As usual, it mixes macroeconomics, geopolitics, and liquidity theory to explain to us crypto enthusiasts why the market is destined to grow.

I'll save your time and highlight the main takeaways of this essay.

⭕️ Bottom reached: The ~$60,000 mark was the local bottom of this cycle. Beyond that — only upward.

⭕️ AI as a liquidity vacuum cleaner: The race for AI leadership between the US and China is a new "Cold War." It requires colossal spending on data centers, chips, and energy. Companies no longer have enough cash, so the Fed will be forced to ease policy to finance this boom.

⭕️ Military inflation: The conflict between the US and Iran is causing countries to divest from dollar assets. Instead of US bonds, governments will invest in real resources, defense, and BTC.

⭕️ Political cycle: Ahead of the 2028 US elections, the administration will do everything to support markets and the economy with cheap money.

The printing press is back in action due to AI and wars. Fiat is devaluing faster than it seems, so Bitcoin is the best lifeline. And a return to $126,000 is an "inevitable predetermined outcome."

Heise is currently heavily exposed to risk. Allocated to HYPE and ZEC, and the next major project for his positions will be NEAR (why exactly that — he promised to explain in the next essay).

Arturio is obviously a fervent bull, which is not the case for you, as most have a short sentiment according to the survey results.