Crypto Market Enters Final Stage of Liquidity Cycle for Profit Growth

Michael Howell, CEO of CrossBorder Capital, indicates that the market is in a lucrative final stage of the liquidity cycle. Key points include:

  • Asset price increases are driven by global liquidity rather than economic growth or GDP performance.
  • Approximately 75% of financial activity focuses on refinancing debt.
  • Central banks and institutions inject liquidity into markets, creating a cycle of rising prices and increased borrowing capacity.
  • Crypto markets are benefiting from this environment, entering a “speculation phase” where assets like Bitcoin and Ethereum typically perform well.
  • A late-stage rally is anticipated, leading to a potential blowoff top with sudden price surges.
  • The newly passed Genius Act will require stablecoins to hold U.S. government securities, potentially increasing crypto liquidity.
  • If stablecoin circulation grows significantly, it could enhance trading volume and capital flows into Bitcoin and Ethereum.
  • Overall market signals suggest a forthcoming rapid increase in crypto values.

Investors should monitor these developments as the current cycle may continue to accelerate.