Ben Simpson (speaker) explains that the US has begun expanding its balance sheet for the first time in four years by buying back Treasury bonds (he cites an initial ~$40 billion). He argues this monetary expansion—not labeled QE by officials—reduces tightening, is bullish for risk-on assets, and should act as a tailwind for Bitcoin and crypto similar to the 2021 rally; he recommends accumulating Bitcoin as the effect plays out over months to a year.
Questions this video answers
January 8, 2026.
Approximately $40 billion.
Four years (first time in four years).
Chapters
Massive news for crypto. For the first time in four years, the US has finally started to expand the balance sheet. Now, they're not calling it technically quantitative easing. What they essentially doing are buying back treasury bonds. $40 billion, I think, was the first load of treasury bonds that they are buying back. And as you can see, this price action down means they've been taking for the last four years money out of the economy, out of the system, tightening up the economy, which makes it harder for businesses to spend, harder for people to spend money, and that is not good for risk on assets. Back in 2021, you can see here where we had that huge run up. Guess what happened? 2021, crypto went absolutely bananas. What is happening now? We are starting that process. This is the thing that's been the tailwind we've been waiting for. We hoped it was coming in 2025. We got delayed. It will start to play out over the coming months and probably year. It's not something that happens overnight, but as we start to see this monetary expansion happening, it's great for risk on assets, great for bitcoin, great for crypto. And it's exactly why we buy bitcoin, because this is what devalues everything else and grows risk on assets. Great time for people to be accumulating bitcoin.
