Markets need urgent liquidity to cover the debt

The global financial system runs on a delicate balance: as debt grows liquidity needs to grow too or the machine ￰0￱ now US debt growth is overtaking liquidity

and that imbalance may be more telling than the old debt-to-GDP ratio when it comes to spotting cracks in the ￰1￱ liquidity is abundant it drives ￰2￱ when liquidity falls short funding pressure rises and risk assets — like equities and crypto — become ￰3￱ last time liquidity ratios fell this low was just before the 2019 repo ￰4￱ then markets looked strong on the surface

yet stress behind the scenes forced the Fed into emergency ￰5￱ doesn’t necessarily mean an imminent collapse but it highlights fragility in the financial ￰6￱ debt keeps racing ahead of liquidity we could see funding stress ￰7￱ crypto this can cut both ways: short-term shocks may drag prices lower as investors de-risk

but over the longer term liquidity problems often push central banks back toward easing — a scenario that tends to favor Bitcoin and digital assets as alternative stores of value.