Netizen Premium | Bitcoin Deep Dive #1

Bitcoin's Bull Case Meets Sticky Inflation

Inflationary Growth Environment Supports Risk Assets, But Watch Policy Risks

The macro regime remains in REFLATION, with accelerating nominal growth and persistent inflation pressures supporting risk assets. January's CPI and PPI data reinforce our expectation of sticky inflation, with a potential uptrend in Core PCE likely starting around mid-year. This inflation dynamic, combined with the U.S.'s precarious fiscal trajectory, puts the Fed in a difficult position: either commit to the 2% target and significantly tighten policy, or accept higher inflation to maintain adequate market liquidity amid explosive Treasury issuance.