A trillion liquidity surge is coming, and Bitcoin may soar like a rocket.

Equity investors are enthusiastic about stablecoins and Circle. The statements from the U.S. Treasury Secretary have further fueled this trend.

The market value of Circle has approached 45% of Coinbase, despite the fact that Circle must hand over half of its net interest income to Coinbase. This phenomenon is thought-provoking.

Since its IPO, Circle's performance has outpaced Bitcoin by nearly 472%. This has made many cryptocurrency investors uneasy.

There must be more realistic reasons behind politicians' dramatic shift in attitude towards stablecoins.

Looking back at 2019, Facebook's Libra project was shelved due to opposition from the political arena and the Federal Reserve. To understand the current shift in policy, we need to examine the main challenges faced by the Treasury Secretary.

The main issue facing the current U.S. Treasury Secretary is how to raise funds for the government's high spending and low tax policies. Global interest in long-term government bonds from developed countries is declining, especially in the context of high prices/low yields.

The real value of long-term government bonds has plummeted by 71% over the past five years. This has exacerbated the financing difficulties for the Treasury.

The Treasury Department is facing an annual federal deficit of about $2 trillion and $3.1 trillion in debt maturing in 2025. At the same time, it needs to keep the yield on 10-year Treasury bonds below 5% and issue debt in a way that stimulates the financial markets.

In the current environment, how does the Secretary of the Treasury find trillions of dollars to buy government bonds in the face of high prices and low yields? This is the core challenge he faces.

Large American "too big to fail" ( TBTF ) banks have two pools of funds ready to purchase trillions of dollars in government bonds at any time: demand/time deposits and reserves held by the Federal Reserve.

By issuing stablecoins, TBTF Bank could release up to $6.8 trillion in Treasury bond purchasing power. These dormant deposits can be re-leveraged in the fiat financial system, thereby driving the market upwards.

If the Federal Reserve stops paying interest on reserves, it could release up to $3.3 trillion for purchasing government bonds. This will have a positive impact on fixed supply monetary assets like Bitcoin (.

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TBTF Bank's adoption of stablecoins can eliminate competition from fintech companies, reduce compliance costs, increase net interest margins, and ultimately drive up stock prices. In return, TBTF Bank will purchase up to $6.8 trillion in Treasury bonds.

Overall, it is expected that $10.1 trillion may flow into the treasury bond market in the future. This massive liquidity injection will have a tremendous impact on risk assets.

Investors should no longer wait for the Federal Reserve to cut interest rates or restart quantitative easing. The real opportunity lies in Bitcoin and TBTF bank stocks, rather than traditional fintech companies.

The stablecoin "Trojan Horse" has infiltrated the financial fortress, but when opened, it contains massive liquidity intended for purchasing treasury bonds. This liquidity will be used to sustain high stock market levels and fill budget deficits.

Investors should seize the opportunities brought by the upcoming wave of liquidity instead of passively watching.

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