Many of you wonder why markets are rallying so much.

Why has #Bitcoin 10xed in 10 months?

Is Tesla really worth $800 billion now when it was $70 billion a year ago…

How are people making so much #money? 🤑

There is a simple reason for it... (1/4)
Due to #COVID19, the Fed and other central banks pumped an insane amount of money in the system.

Simple calculations from the Fed’s balance sheet show that 1 USD in Jan 2021 is worth 40% less than 1 USD in Jan 2020.

1.00 USD2021 : 0.59 USD2020

But wait, there's more... (2/4)
Central banks pumped the markets like never before.

Due to this, investors and companies gained confidence about economic recovery.

So, more and more money started entering the financial markets...(3/4)
The excitement and financial opportunities are attracting retail. Every Tom and Harry has a brokerage account these days.

So, although markets are rallying, the real value of financial markets is far lower than what it seems…

Just some food for thought... (4/4)

#money #crypto
You can follow @IamBitmannn.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled:

By continuing to use the site, you are consenting to the use of cookies as explained in our Cookie Policy to improve your experience.