Central Bank Policies and Crypto Liquidity

Crypto markets may run on code and decentralization, but they still flinch every time the Fed clears its throat. Whether it's a rate hike or a hawkish press conference, traders know: liquidity can dry up or flood in based on central bank signals.

Global debt just passed $320 trillion, and that number should matter to every crypto trader.

Why? Because when governments overspend and central banks print money to cover the gap, traditional assets wobble—and crypto often flies. From Bitcoin’s role as a hedge to the way liquidity fuels price spikes, global debt isn’t just a macro concern.

For years, Bitcoin stood as the face of digital money: decentralized, borderless, and out of governments’ hands. But then, central banks have stepped into the ring.

Central Bank Digital Currencies (CBDCs) promise the speed and convenience of crypto, minus the volatility, and minus the anonymity. As CBDCs move from theory to rollout, the crypto landscape faces a major shakeup.