According to @KobeissiLetter, policymakers are adding liquidity via eight catalysts: planned US $2,000 stimulus checks, a Japan $110B package, a China $1.4T package, the Fed ending QT on December 1, ~$1.9T annual US Treasury issuance, Canada restarting QE, record $137T global M2, and 320+ rate cuts over 24 months (source: The Kobeissi Letter). The author argues these developments raise the risk of another inflation wave that markets must price (source: The Kobeissi Letter). For crypto trading, liquidity expansion and debasement concerns have historically supported large-cap crypto like BTC and ETH as monetary debasement hedges; monitor confirmation through inflation expectations and real-yield dynamics (source: ARK Invest; source: Federal Reserve FRED). Key signals to watch include US 5y5y inflation expectations and breakeven rates, DXY, and US 10Y real yields to gauge risk-on versus risk-off conditions (source: Federal Reserve FRED). Track crypto-native liquidity via stablecoin net issuance and aggregate free-float supply, which have correlated with market breadth in prior cycles (source: Coin Metrics; source: Kaiko Research). Tactically, if stimulus/QE headlines are confirmed alongside rising breakevens and a softer DXY, momentum setups in BTC, ETH, and other high-liquidity assets tend to improve; conversely, a jump in real yields with a stronger dollar argues for tighter risk and rally fades until liquidity data turn (source: Federal Reserve FRED; source: ARK Invest).

According to Crypto Rover (@rovercrc), the Federal Reserve has officially declared stagflation, with a stimulus expected to be announced by October at the latest, potentially as early as July, or even during an emergency meeting in May. This development suggests a strategic accumulation period at current lows for traders.

According to Crypto Rover, China has announced a massive stimulus package of 300 billion yuan in bonds along with rate cuts, which is seen as extremely bullish for Bitcoin. This move could increase liquidity in the market, potentially benefiting cryptocurrencies.