Part 5/12:
The most compelling evidence against the halving-driven cycle is how market rallies align with liquidity conditions. Large-scale monetary easing—massive inflows of liquidity from central banks—precipitates risk asset growth, including cryptocurrencies. When liquidity is abundant, risk assets tend to surge regardless of halving events.
- 2013: The first crypto bull run was fueled by the Federal Reserve's third round of quantitative easing (QE3), which injected $85 billion per month into markets. Combined with Bank of Japan easing policies, liquidity soared, and risk assets flourished.