All major cryptocurrency bull markets have one thing in common: 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 one or more of the following macro levers:
Interest rate cuts – Lowering borrowing costs to encourage debt-driven growth
Quantitative easing (QE) – Central banks buying government bonds to inject cash into the system
Forward guidance (commitment to not raise interest 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 restrictions on institutional risk-taking
Loan forbearance policies – Maintaining credit flow even in the event of defaults
Bank bailouts or backstops – Preventing systemic collapse and restoring confidence
Massive fiscal spending – Governments 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 foreign central banks affecting the crypto market through capital flows
Emergency credit mechanisms – Temporary lending tools established during crises
These actions not only drive up traditional assets but also trigger what Jesse calls "speculative mania." Cryptocurrencies, as the highest-risk but most potential assets in the system, often benefit the most.