Global Liquidity Surge Fuels Crypto Market Optimism Amid Macro Turbulence
Global liquidity injections from China, the U.S. Federal Reserve, and the U.S. Treasury have created a rare macroeconomic alignment historically favorable for Bitcoin and altcoins. While regulatory caution temporarily suppressed BTC prices, the underlying cash influx signals a potent long-term catalyst for crypto assets.
China's monetary operations injected approximately $209 billion through MLF, treasury trading, and reverse repos. Concurrently, the Fed added $13.5 billion in repo operations—its second-largest since COVID-19—while formally ending Quantitative Tightening after draining $2.4 trillion since 2022. This policy shift toward monetary expansion coincides with the U.S. Treasury's record $14.5 billion debt buyback and $70 billion TGA account injection.
The liquidity surge mirrors pre-bull market conditions observed in 2020-2021, when similar monetary expansion preceded crypto's last major rally. Market makers now face a critical juncture: regulatory headwinds versus the strongest liquidity tailwinds in three years.
