All major cryptocurrency bull markets share a commonality: they coincide with massive injections of liquidity into the global economy. These liquidity surges are not random events, but are initiated by central banks and fiscal authorities, pulling on one or more of the following macro levers:
Interest Rate Cuts – Reducing borrowing costs to encourage debt-driven growth
Quantitative Easing (QE) – Central banks purchasing government bonds to inject cash into the system
Forward Guidance (commitment to not raise rates) – Influencing market sentiment by releasing future low-interest rate expectations
Lowering Reserve Requirements – Increasing the funds banks can lend
Relaxation of Capital Regulations – Reducing restrictions on institutions taking risks
Loan Tolerance Policies – Maintaining credit flow even in the face of defaults
Bank Bailouts or Backstops – Preventing systemic collapse and restoring confidence
Massive Fiscal Spending – Governments injecting funds directly into the real economy
Release of Funds from the U.S. Treasury General Account (TGA) – Injecting cash from the Treasury's account into the market
Overseas QE and Global Liquidity – Actions by other countries' central banks affecting the cryptocurrency market through capital flows
Emergency Credit Facilities – Temporary lending tools established during crises
These actions not only drive up traditional assets but also trigger what Jesse refers to as “speculative mania.” Cryptocurrencies, being the highest risk but also the most promising assets in the system, often benefit the most.