Inflation Expectations and Cryptocurrencies: Macroeconomic Policy Perspectives on Bitcoin and Privacy Coins

【CoinPost】The changing macro environment is reshaping the logic of asset allocation. According to the latest analysis by industry veteran investors, the U.S. government faces a tricky economic goal before the 2026 midterm elections and the 2028 presidential election — to boost nominal GDP to demonstrate economic vitality while suppressing living costs like gasoline to appease voters. To achieve this seemingly contradictory goal, the government may adopt strategies such as increasing oil supply through international political means to lower oil prices, while coordinating with the Federal Reserve to implement large-scale deficit spending and credit expansion.

In simple terms, this means the printing press might need to run at full speed. When excess dollar liquidity floods the market, investors need to find assets that hedge against fiat devaluation. As representatives of hard assets, Bitcoin and mainstream cryptocurrencies are expected to be the biggest beneficiaries — a classic liquidity story.

But there’s a second layer to the story. Structural opportunities are also emerging within crypto assets. The privacy sector has recently attracted institutional attention. Some well-known family offices in the industry have already significantly accumulated privacy-oriented assets at very attractive prices in Q3 2025, explicitly stating that this is a response to future liquidity flooding. Their logic is that, in the context of fiat credit expansion, choosing the right privacy coins could outperform Bitcoin and Ethereum.

What are the specific investment strategies? These institutions are selling some Bitcoin to finance privacy positions, while also selling some Ethereum holdings to increase exposure to DeFi. The risks are high, but if macro judgments are correct, the potential for excess returns is substantial. Currently, these seasoned investors are entering 2026 with near-maximum risk exposure, holding very few USD stablecoins, with most chips invested in assets with growth stories.

This allocation approach reflects a consensus — in an era of liquidity flooding, choosing the right niche sectors may yield higher returns than simply holding Bitcoin. Whether themes like privacy and DeFi can truly become the main carriers of the next wave of liquidity depends on whether the macro situation can evolve as expected.