💡 QE & QT: The truth about market liquidity
✅ Quantitative Easing (QE)
Central banks print money and inject liquidity, which is usually good for cryptocurrencies.
✅ Quantitative Tightening (QT)
The central bank's balance sheet reduction and reduction of market funds are traditionally considered to be unfavorable to the crypto market.
Fact: The crypto market can explode without QE!
🔹 Data shows that bull markets do not only occur during QE periods.
📈 Bull market case: outbreak not dependent on QE
🔍 Case 1: Altcoin bull run
The market value of altcoins soared from $400 billion to $1.7 trillion. During this period, the global market was in the QT stage.
🔍 Case 2: 2017 Bull Market
Driven by market sentiment, technological innovation and capital inflows. Not entirely dependent on loose monetary policy.
🚀 Key factors for the altcoin bull market
1️⃣ Market Cycles & Bitcoin Trends
2️⃣ Sources of liquidity (not limited to central banks)
3️⃣ New narrative & sector rotation
💡 Capital Flow Sequence Forecast:
- Bitcoin First $BTC
-Major altcoins ( $ETH , $BTC )
- Large-cap and mid-cap stocks
- Low market cap tokens
📊 Observation indicators:
🔹 BTC Price & Dominance Rate - When BTC consolidates, funds tend to flow into alts.
🔹 ETH and L2 ecosystem growth- When the ecosystem is strong, it indicates the start of the altcoin season.
🔹 The rise of new narratives (such as DeFi, RWA) - funds are gradually flowing into hot areas.
🔥 Conclusion: Bull market does not mean global economic recovery!
✅ QE & QT are not the decisive factors, market capital flows, sentiment and innovation are the key!
✅ Altcoin bull markets often break out during BTC consolidation periods rather than relying on macroeconomic recovery.
✅ Plan ahead for new hot spots, don’t wait until the market “looks better” before taking action!
🎯 Want to catch the next bull market? Pay attention to the flow of funds & key narratives, the bull market may have quietly arrived! 🚀
