All major cryptocurrency bull markets share a common point: they all occur simultaneously with a massive injection of liquidity into the global economy. These liquidity surges are not random events, but are initiated by central banks and fiscal authorities, pulling along 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 interest rates) – Influencing market sentiment by releasing future low-interest rate expectations
Lowering Reserve Requirements – Increasing the amount of funds banks can lend
Relaxing Capital Regulations – Reducing constraints on institutions taking risks
Loan Forbearance Policies – Maintaining credit flow even in the face of defaults
Bank Bailouts or Backstops – Preventing systemic collapse and restoring confidence
Massive Fiscal Spending – Governments directly injecting funds into the real economy
U.S. Treasury General Account (TGA) Fund Release – Injecting cash from the Treasury's account into the market
Overseas QE and Global Liquidity – The actions of other countries' central banks affecting the crypto 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 calls "speculative frenzy." Cryptocurrencies, being the highest-risk but most potential assets in the system, often benefit the most.