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Great quote from @LeahWald on the @solstrategies Earnings Call:
"We're set up to be picks and shovels of the Solana Ecosystem. When all the Solana ETFs get launched, they will need validators and staking services. We have the infrastructure and we'll be ready for them"
What drives cryptocurrency prices, the Bitcoin bull market, or the altcoin bull market? One word: liquidity. That’s it. Without liquidity, there’s no bull market—period. And where does that liquidity come from? Central banks. When there’s no organic GDP growth in the U.S. or globally, central banks step in, refinance debt, and pump money into the system. That’s the game.
This all began in 2008 after the mortgage meltdown. Before that, the world had no clue what quantitative easing (QE) was, or “money printing,” as it’s often called. And while I’m oversimplifying, it boils down to this: the issuance of short- and long-term Treasuries. You’re talking 2- to 5-year T-bills, and longer-dated bonds like 10- or 20-year maturities. Initially, banks are encouraged to buy these bonds to keep the system liquid. But when the financial system is strained or illiquid, the Federal Reserve steps in and buys those T-bills, adding them to its balance sheet.
This wasn’t a thing before 2008. QE didn’t exist in the U.S. until after the financial crisis. Then came 2012, when the European banking crisis hit. That’s when global central banks got together under what’s known as the Basel Accord. They aligned with the U.S. Federal Reserve, slashed interest rates close to zero, and propped up lending and borrowing worldwide. This wasn’t just about saving the stock market—it was about preventing the entire system from collapsing.
Now here’s the connection to crypto: this entire liquidity cycle, driven by the issuance and refinancing of Treasuries, coincides with crypto bull markets. It’s not random. Every time central banks inject liquidity into the system, risk-on assets—tech stocks, the S&P 500, and especially crypto—explode.
Want proof? Between 2008 and 2024, not including '24, the S&P 500 returned an average of 12.5% annually. The NASDAQ? Around 18–19%. And Bitcoin? approx. 110% per year (I know it's wasn't til 09 when BTC came to market, created 08). If you held through every correction, that’s what you got. That’s why we’re in crypto—it’s not just the gains, it’s the unmatchable growth potential. UNMATCHABLE. The smaller the MCAP the more X.
Elephant in room: But why can’t they just pay off the debt created since 2008? Simple: economic growth hasn’t kept up. A shrinking labor force due to declining birth rate since 80s and the largest amount of people over 65 the world has ever known.
That leads to lower economic activity, which leads to a smaller GDP. And without GDP growth, you don’t have the money to pay off debt LOL they can't pay the fuckin interest on the debt.
It’s a vicious debt cycle, you all mis-named it the crypto or bitcoin bull cycle.
Central banks are stuck in a loop of refinancing debt and pumping liquidity into the system, which is exactly what drives crypto bull markets.
This is why all the noise you see on X or Twitter is bullshit. No influencer, no Maxi, no hype machine or network or community controls this game. Again, It’s not about some new meme coin (though people do make tons or ungodly amounts of profits)—it’s about liquidity. That’s the foundation. If you don’t understand this, you’re just following the herd.
So here’s the bottom line: liquidity drives crypto prices. Central banks print money, and that liquidity flows into risk-on assets. That’s why crypto pumps during QE and dumps during QT. The people who figure this out aren’t worried about daily noise—they’re watching the macro picture.
If you’re new to this, keep this one thing in mind: the market isn’t about what you see on social media. It’s about liquidity.
🚨 JACK MALLERS: "Ripple is undermining American prosperity and freedom. I can confirm that they are actively spending millions of dollars trying to undermine a strategic Bitcoin reserve in America. This is corporate lobbying disguised as tech growth. We must FIGHT BACK."