All major cryptocurrency bull markets have one thing in common: 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 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 interest rates) – influencing market sentiment by releasing expectations of low future rates
Lowering reserve requirements – increasing the funds banks can lend
Relaxing capital regulations – reducing the constraints on institutions to take 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 – government directly injecting funds 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 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 refers to as a "speculative frenzy." Cryptocurrencies, being the most risky yet potentially rewarding assets in the system, often benefit the most.