Crypto Enters First Net-Positive Liquidity Since 2022, Says Delphi Digital - The Bull Run’s Fuel Just Arrived

Liquidity's back on the menu. After a three-year drought, the crypto market just flipped a critical switch.

The Liquidity Engine Revs

Forget sideways chatter. The data from Delphi Digital shows a fundamental shift: aggregate liquidity flows have turned net-positive for the first time since the last cycle's peak. That's not a speculative hope—it's the measurable fuel that drives asset prices. Dry powder is moving off the sidelines.

What This Means for Your Portfolio

This isn't about a single coin pumping. Positive liquidity acts like a rising tide, lifting all boats with legitimate use cases. It signals renewed institutional and retail confidence, the kind that builds sustainable momentum rather than fleeting hype. The mechanisms are simple: more capital chasing assets equals price discovery, and we all know which direction that tends to go when supply is finite.

Of course, traditional finance pundits will call it irrational—right up until their clients demand exposure. The cynical jab? Wall Street hates a party it wasn't invited to host. Now, the real test begins: can the ecosystem deploy this capital smarter than last time?

Crypto Bulls Can Rejoice As The Macro Regime Is Shifting

In a follow-up post, the firm is explicit: “The Fed’s liquidity buffer is gone. Reverse Repo Balances collapsed from over $2 trillion at the peak to practically zero.” In 2023, a swollen RRP allowed the Treasury to refill its General Account without directly draining bank reserves, because money-market funds could absorb issuance out of the RRP. “With the RRP now at the floor, that buffer no longer exists,” Delphi warns.

From here, “any future Treasury issuance or TGA rebuild has to come directly out of bank reserves.” That forces a policy choice. As Delphi puts it, “The Fed is left with two options: let reserves drift lower and risk another repo spike or expand the balance sheet to provide liquidity directly. Given how badly 2019 went, the second path is far more likely.”

In that scenario, the central bank would shift from shrinking its balance sheet to adding reserves, reversing a core dynamic of the past two years. “Combined with QT ending and the TGA set to draw down, marginal liquidity is turning net positive for the first time since early 2022,” Delphi concludes. “A key headwind for crypto could be fading.”

For the crypto market, the firm frames 2026 as the pivotal year: “2026 is the year policy stops being a headwind and becomes a mild tailwind. The kind that favors duration, large caps, gold, and digital assets with structural demand behind them.”

Rather than calling for an immediate price spike, Delphi’s thesis is that the macro regime is shifting toward a more supportive, liquidity-positive backdrop for Bitcoin and larger crypto assets as policy eases and the era of aggressive balance-sheet contraction comes to an end.

At press time, the total crypto market cap was at $3.1 trillion.