All major crypto bull markets have one thing in common: 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:
Lowering interest rates – reducing 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 future interest rates
Lowering reserve requirements – increasing the funds banks can lend
Easing capital regulations – reducing restrictions on risk-taking by institutions
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 – government directly injecting funds into the real economy
Release of funds from the U.S. Treasury General Account (TGA) – injecting cash from Treasury accounts into the market
Overseas QE and global liquidity – actions of other countries' 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 frenzy.' Cryptocurrencies, as the highest-risk but most potential-laden assets in the system, often benefit the most.