Global Asset Shifts: The Role of Liquidity in Crypto Market Cycles

Crypto Bull Markets and Liquidity: Crypto bull markets are primarily driven by global liquidity conditions rather than narratives, which serve as catalysts for capital flows rather than sustained demand.

Understanding Crypto as an Alternative Asset: Unlike traditional risk assets, crypto does not generate cash flows and is better understood as a liquidity-sensitive alternative asset that thrives in environments of abundant capital and elevated risk appetite.

Macro Drivers and Asset Rotation: A comprehensive asset rotation framework should prioritize macroeconomic indicators such as interest rates, inflation, and liquidity conditions, which influence risk appetite and asset prices across the market.

Cycle Awareness in Investment Decisions: Recognizing economic cycles and their impact on asset performance helps investors avoid emotional decision-making and better understand when to allocate capital to high-risk assets like crypto.