Yes, Satoshi definitely knew how liquidity cycles work.
Nowadays everyone tracks liquidity cycles, but I've never seen anyone explain why liquidity is cyclical to begin with.
This is a dark rabbit hole and deserves its own post.
TL;DR: You keep liquidity cyclical because cycles are the cheapest way to discipline leverage, migrate users onto programmable rails, and entrench policy-grade vendors - without risking a consent crisis.
Cycles govern behavior at lower cost than constant repression.
A steady state would entrench incumbents you don't choose. Cyclicity lets you re-select winners every turn.
This Thomas Jefferson quote sort of explains it:
"If the American people ever allow private banks to control the issue of their currency first by inflation then by deflation the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered... I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people to whom it properly belongs."
There is a documentary (and a book) "Princes of the Yen" by Richard Werner that highlights exactly this. Very dark stuff.
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Odysee
Princes of the Yen - The Hidden Power of Central Banks_fixed 2014
View on Odysee: Princes of the Yen - The Hidden Power of Central Banks_fixed 2014
