Loose monetary policies like QE and ZIRP have historically fueled asset rallies across markets. When central banks flood liquidity into the system through quantitative easing and maintain near-zero interest rates, investors chase yields wherever possible—including crypto and alternative assets. Without the friction of rising rates or tightening measures, risk appetite typically expands dramatically. It's a simple playbook: accommodative policy environment tends to lift all risk assets higher.
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Loose monetary policies like QE and ZIRP have historically fueled asset rallies across markets. When central banks flood liquidity into the system through quantitative easing and maintain near-zero interest rates, investors chase yields wherever possible—including crypto and alternative assets. Without the friction of rising rates or tightening measures, risk appetite typically expands dramatically. It's a simple playbook: accommodative policy environment tends to lift all risk assets higher.