Bull market catalyst: Japan is the true liquidity engine!
Recently, nearly everyone in the market has been focused on the Federal Reserve (FED). But what truly deserves our attention is another force from Asia: Japan.
China has already started a money printing cycle, while Japan is also preparing to launch its largest quantitative easing (QE) policy since 2020. This could be the long-awaited trigger for Ethereum (ETH) and various altcoins (ALTS).
Let’s break down this potential opportunity in detail.
🧩 Why does Altseason need QE?
Every altcoin bull market is inseparable from one of the following two things:
The central bank initiates quantitative easing (QE);
The Federal Reserve halts quantitative tightening (QT).
Currently, neither of the above has truly emerged, which is the core reason why altcoins have performed poorly in this cycle.
🏦 What is QE? How does it ignite risk assets?
During the QE period, the central bank electronically prints money to buy government bonds and other financial assets. This behavior:
Increasing liquidity in the banking system, prompting more capital to flow into the market;
Push up bond prices, lower bond yields, and reduce financing costs;
Stimulating funds to flow into high-risk assets (including stocks, crypto assets, etc.).
This is precisely the main mechanism we saw for the explosive growth of altcoins during the 2020–2021 cycle.
🚫 Why can’t we rely on the Federal Reserve?
The current Federal Reserve faces multiple constraints:
US Treasury yields are rising;
Tariff policies lead to inflation risks;
The Federal Reserve has clearly stated that it will not restart QE until rates approach zero.
Even if the Federal Reserve injects money into the market due to a liquidity crisis in the future, its scale will be difficult to support a complete Altseason.
🎯 The real liquidity boost comes from Japan.
Recently, China injected 500 billion yuan into the money market. More importantly, Japan may also join this liquidity release.
Currently, Japan is facing:
Treasury yields are rising;
The yen strengthens, and export competitiveness declines.
Under internal and external pressures, Japan's most likely response is — large-scale quantitative easing + currency intervention.
🌀 Historical Repetition: Japan's Classic Operating Methods.
Looking back at the post-2008 financial crisis, Japan adopted a two-step strategy:
Massive printing of yen, actively depreciating the currency;
Massive purchases of dollars in the foreign exchange market further depress the value of the yen.
At the same time, Japan is using the dollars it acquires to buy US Treasuries, directly pushing down US Treasury yields significantly and indirectly boosting Japanese exports.
📈 SoftBank, Tether, and Bitcoin fund: The signals are already clear.
Recently, SoftBank has collaborated with the son of the US Secretary of Commerce and Tether to launch a $3 billion Bitcoin fund.
This is no coincidence — Asian capital has quietly laid the groundwork for the next crypto bull market.
✅ Conclusion:
Each of us is looking forward to an altseason similar to that of 2021, but the reality is that the number of tokens in the crypto market has grown several times, and the demand for liquidity far exceeds the past.
Without a new round of global-scale QE, it is difficult for altcoins to take off relying solely on the market itself.
Fortunately, China has already started, and Japan is about to follow.
A true liquidity flood is about to arrive; patient positioning is more valuable than any FOMO.
