All major crypto bull markets share a common feature: they coincide with a massive injection 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 – Lower borrowing costs, encouraging debt-driven growth
Quantitative easing (QE) – Central banks purchasing government bonds, injecting cash into the system
Forward guidance (commitment to not raise interest rates) – Influencing market sentiment by releasing expectations of low rates in the future
Lowering reserve requirements – Increasing the funds available for banks to lend
Relaxing capital regulations – Reducing constraints on institutions taking risks
Loan forbearance policies – Maintaining credit flow even in the event of defaults
Bank bailouts or backstops – Preventing systemic collapse and recovery