Matrixport: The US market is entering a new cycle of liquidity release, and the market is expected to continue until 2026 According to a report by Golden Finance, Matrixport released its weekly report stating that the US market is entering a new cycle of liquidity release, and structural funding support may drive Bitcoin and risk assets to continue to rise, with the market expected to continue until 2026. The current funding structure and credit environment are quite similar to the early stages of previous bull markets: ample liquidity, improved credit environment, policy shift towards dovish, and multiple positive factors resonating to drive asset prices up. Since the fourth quarter of 2018, the size of US money market funds has rapidly expanded, increasing from $3 trillion to $7.4 trillion, setting a new historical high. The current annualized interest income has reached $320 billion, constituting an important incremental fund flowing into high-yield assets. At the same time, corporate buybacks are also accelerating significantly. Since 2025, the announced repurchase amount has reached 984 billion US dollars, and the annual scale is expected to exceed 1.1 trillion US dollars. The current volatility is at a low level, and these funds will continue to flow into the US stock market and drive up valuations. The structure of the financial system is further amplifying the impact of liquidity. Since 2008, the Federal Reserve has been paying interest on bank reserves, which currently amounts to $3.4 trillion and generates an annual interest of $176 billion. In the current high interest rate environment, this mechanism has made money market funds and commercial banks the main beneficiaries. However, our model shows that the pace of interest rate cuts by the Federal Reserve has fallen behind market expectations for 32 consecutive months. To narrow this gap, a cumulative interest rate cut of about 62 basis points is still needed in the coming months. Credit lending is recovering. Since April 2025, the cumulative increase of $74 billion in US commercial and industrial loans shows early signs of a new credit expansion cycle. Since June, credit spreads have continued to narrow and the financing environment has improved, which has traditionally been favorable for Bitcoin. This trend has also been preliminarily reflected in Bitcoin's price performance. Our model shows that inflation will gradually fall back to the Federal Reserve's 2% target range, and volatility will tend to converge, providing more policy space for a rate cut in September. The fiscal side is also injecting more liquidity through issuing bonds. Since the "Great Beauty Act" raised the debt ceiling by $5 trillion, the Ministry of Finance has issued a net additional $789 billion of treasury bond in less than six weeks. This large-scale bond issuance coincides with the launch of a new upward trend for Bitcoin. Historically, in the Trump led financial expansion cycle, the price of Bitcoin has always strengthened with the issuance of treasury bond.