Last year, the United States' broad money supply (M2) surpassed the $26.7 trillion mark, with an issuance scale of $1.65 trillion, and the pace of monetary expansion hit a four-year high. In such a liquidity environment, the destination of funds has become a key issue.

Recent data clearly answer this question. Just yesterday, the US spot Bitcoin ETF absorbed $75 million in new funds, and the Ethereum ETF also received a continuous inflow of $13 million. These are not isolated transactions but large-scale allocations at the institutional level. When the money-printing speed accelerates and high-quality assets become scarce, funds naturally seek safe, vertical investment targets.

Interestingly, the logic behind this trend is straightforward: during a liquidity flood cycle, excess liquidity inevitably leads to asset scarcity. When the RMB depreciates, people buy USD; when the USD depreciates, people buy gold. The same principle applies here: as fiat currencies are continuously diluted, scarce crypto assets become hedging tools. From large investors gradually reducing holdings to surging on-chain trading activity, the market is voting with its feet.

The lesson is: in such cycles, rather than chasing small coins with low liquidity, it’s better to stick with mainstream assets that have genuine narratives and ample liquidity. Be patient and let time prove it.