All major cryptocurrency bull markets share a common point: they coincide 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 purchasing government bonds to inject cash into the system
Forward guidance (commitment not to raise rates) – influencing market sentiment by releasing expectations of low interest rates in the future
Lower reserve requirements – increasing the funds banks can lend
Relaxation of capital regulations – reducing restrictions on institutions taking risks
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 – the government injecting funds directly 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 facilities – temporary lending tools established during a crisis
These actions not only drive traditional assets up but also trigger what Jesse refers to as 'speculative mania.' Cryptocurrencies, as the highest-risk but most potential-laden assets in the system, often benefit the most.