New Fire Group Pyramid: Bitcoin has become a precursor to market liquidity in the current tight environment

ON JULY 31ST, NEW FIRE GROUP CHIEF ECONOMIST FOWLER SHARED THE LATEST JUDGEMENT ON THE AI INDUSTRY CYCLE WITH DIGITAL ASSET MOVEMENTS AT THE GROUP’S MONTHLY CUSTOMER’S PRIVATE MEETING. FOUGH PENG NOTES THAT THE AI INDUSTRY IS IN THE TRANSITION PHASE FROM MID-RANGE INFRASTRUCTURE TO MID-STREAM APPLICATIONS: THE AI INFRASTRUCTURE, REPRESENTED BY BRITISH WIDA, IS IN MATURITY, BUT THE DOWNSTREAM APPLICATION HAS YET TO EXPERIENCE A MILESTONE PRODUCT BREAKTHROUGH. A KEY SIGNAL HAS EMERGED IN THE SECOND QUARTER OF THIS YEAR – THE HEAD-TECH GIANT'S FREE CASH FLOW IS APPROACHING ZERO, AND IF CAPITAL SPENDING CONTINUES TO EXPAND, IT WILL FACE FINANCING COSTS OF 6-7%. IF THE COMMERCIALIZATION RETURNS ARE NOT REALIZED WITHIN A PERIOD OF SIX MONTHS TO ONE YEAR, THE INDUSTRY-WIDE INCREASE IN CAPITAL EXPENDITURE WILL INEVITABLY FALL, AND THE AI UPSTREAM INDUSTRY-WIDE CHAIN WILL BE SIMULTANEOUSLY UNDER PRESSURE. AT THE DIGITAL ASSET LEVEL, IT IS CONSIDERED THAT BITCOIN HAS GRADUALLY MOVED FROM AN ORIGINAL ENCRYPTED NARRATIVE TO A STANDARDIZED FINANCIAL ASSET; IN THE CURRENT TIGHT LIQUIDITY ENVIRONMENT, BITCOIN HAS TAKEN THE LEAD AS A PURELY LIQUID “MIDDLE-END ASSET” INTO THE CONTRACTION CYCLE AND HAS BECOME A PRECURSOR INDICATOR OF MARKET LIQUIDITY. HE SUGGESTED THAT INVESTORS JUDGE THE KEY POINTS OF THE MARKET BY FOCUSING ON TRACKING CHANGES IN THE FREE CASH FLOW OF LEADING TECHNOLOGY ENTERPRISES AND DATA ON THE STRUCTURE OF THE UNITED STATES EQUITY MARKET。