Deflation's Dead, Bitcoin's Alive: Larry McDonald Calls Inflation 'Permanent' and Adds BTC to Bear Traps

Larry McDonald, the financial world's favorite doom-scroller, has a message for investors: the 20-year "deflationary regime" is dead and buried, and high inflation is here to crash the party. According to McDonald, this new era isn't kind to software darlings like Netflix—instead, it's the age of physical assets and rare earth metals, because apparently bytes don't hedge against monetary chaos.

In a plot twist that would make even degens double-take, McDonald's Bear Traps Report has added Bitcoin to its portfolio for the first time. The analyst believes that as the market matures and institutional players like BlackRock pile in, those nasty 70% drawdowns will pack less punch than before. Nothing says "we take this seriously" quite like a bear adding the most volatile asset on the planet to its lineup.

McDonald and his team also keep a close eye on the Bitcoin/Gold ratio, waiting for strategic levels to stack sats. In his view, Bitcoin has earned its spot alongside gold, silver, and platinum—especially now that the dollar's global dominance is looking shakier than a DeFi protocol with no audit. The precious metals gang just got a new member, and it's the one asset your grandma still doesn't understand.

The cherry on top? McDonald labeled U.S. sanctions and property rights interference (see: Russia) as "Washington's arrogance," arguing it's pushing global partners away from the greenback. He predicts dollar debasement is inevitable within the next decade. Nothing says "trust the system" like freezing a nation's assets and then pikachu-face.jpg when they look for alternatives.

In this scenario, Bitcoin's decentralized nature makes it a rather attractive lifeboat—for those who didn't get the memo that Tether is actually backed by a combination of hope, commercial paper, and possibly magic beans.

*This is not investment advice.