Matrixport: Multiple positive factors are driving asset prices upward, and the market is expected to continue until 2026

PANews reported on August 15th that Matrixport stated in its latest research report that the US market is entering a new cycle of liquidity release, and structural funding support may drive a continued upward trend in Bitcoin and risky assets, 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, an improving credit environment, and a dovish policy shift, all of which have resonated with multiple positive factors and driven asset prices upward.

US money market funds have expanded rapidly since the fourth quarter of 2018, increasing from $3 trillion to $7.4 trillion, a record high. Annualized interest income currently stands at $320 billion, representing a significant influx of funds into high-yield assets. Meanwhile, corporate buybacks have also accelerated significantly. Announced buybacks have reached $984 billion since 2025, with the full-year total expected to exceed $1.1 trillion. With volatility currently low, these funds will continue to flow into US stocks and boost valuations.

The structure of the financial system is further amplifying the impact of liquidity. Since 2008, the Federal Reserve has paid interest on bank reserves, which currently stands at $3.4 trillion, generating $176 billion in interest annually. In the current high-interest rate environment, this mechanism primarily benefits money market funds and commercial banks. The Fed's pace of interest rate cuts has lagged behind market expectations for 32 consecutive months, and closing the gap will require a cumulative rate cut of approximately 62 basis points in the coming months.

Credit supply is picking up. Since April 2025, US commercial and industrial loans have increased by $74 billion, showing early signs of a new credit expansion cycle. Since June, credit spreads have continued to narrow, improving the financing environment. Historically, this has generally been positive for Bitcoin, and this trend is already being initially reflected in Bitcoin's price performance. Inflation will gradually fall back to the Federal Reserve's 2% target range, and volatility is converging, providing more policy space for a September rate cut.

The Treasury is also increasing liquidity injections through bond issuance. Since the "Big Beautiful Act" raised the debt ceiling by $5 trillion, the Treasury has issued a net $789 billion in bonds in less than six weeks. This massive issuance coincides with a new Bitcoin rally. Historically, during fiscal expansions led by Trump, Bitcoin prices have often risen in tandem with Treasury bond issuance.