All major crypto bull markets share a commonality: they coincide with massive injections of liquidity into the global economy. These liquidity surges are not random events; they are initiated by central banks and fiscal authorities, pulling one or more of the following macro levers:
Interest Rate Cuts – Lowering 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 expectations of future low rates
Lowering Reserve Requirements – Increasing funds available for banks to lend
Relaxing Capital Regulations – Reducing constraints on institutions taking on risk
Loan Forbearance Policies – Maintaining credit flow even in the event of defaults
Bank Bailouts or Backstops – Preventing systemic collapse and recovery