Mastering Bitcoin and Altcoins in The QE Cycle E-Book

Dwayne Anderson

• Herausgeber: Publisher s21598
• Kategorie: Fachliteratur
• Sprache: Englisch

Veröffentlichungsjahr: 2025

Beschreibung

Bitcoin Is Bleeding. Japan Is Tightening. The Fed Is Hesitating. The Old Cycles No Longer Explain What Comes Next.
Crypto markets feel broken because the old four-year halving framework is no longer enough. Prices are struggling not due to failed narratives, but because global liquidity is tightening. The Bank of Japan is raising rates, the Federal Reserve is cautious, and capital is being drained from risk assets.
This does not mean the cycle is over.
It means the market is in the transition zone—the most difficult phase, where tightening hasn’t ended and easing hasn’t fully begun.
The real signal isn’t on a chart. It sits inside central bank plumbing, specifically the Federal Reserve’s Reserve Management Purchases. RMP determines whether liquidity stabilizes beneath the market or continues to fade.
In Mastering Bitcoin and Altcoins in the QE Cycle, Dwayne Anderson explains how to read these signals and survive this phase. This is not a hype-driven book. It is a practical framework for macro-driven markets.
You will learn why the halving couldn’t save this phase, how to track liquidity shifts, why Bitcoin acts as the anchor, and when altcoins only work once liquidity becomes excessive—not merely stable.
The market will turn. But most investors fail during the uncertainty before it does.
This book helps ensure you’re still positioned when the real liquidity cycle begins.

Leseprobe

Table of Contents

Mastering Bitcoin and Altcoins in The QE Cycle

Table of Contents

Foreword | The Cycle Has Evolved and the Sequence Now Matters More

Introduction | Understanding the New Crypto Cycle Where Liquidity, ETFs, and the Halving Converge

Chapter 1 | The Liquidity Cycle and Why It Overrides Sentiment

Chapter 2 | Anchor vs. Trade — Understanding the Two Money Engines

Chapter 3 | The Mechanics of Liquidity Expansion — How Money Actually Enters the System

Chapter 4 | The Prerequisite Reframed: Why Liquidity Can Now Arrive Before Zero

Chapter 5: | The Countdown to the Money Flood — Three Locks That Turn QE into a Real Bull Market

Chapter 6 | The Political Time Bomb—Why Washington Guarantees the Boom

Chapter 7 | The Institutional Green Light—How Regulation Made Crypto Safe

Chapter 8 | The Tech Revolution—Building Real-World Value on the Blockchain

Chapter 9 | The New Gold Rush—Where the Next Retail Wave Will Buy

Chapter 10 | The Final Confirmation—Securing Bitcoin's Place in History

Chapter 11 | The Investment Strategy—BTC as the Investment, Alts as the Trade

CHAPTER 12 | The Complete 2026 Market Sequence: When the Tide Turns for Real

Chapter 13 | Cycle Psychology — The Emotional Clock of Liquidity

Chapter 14 | Could the Bitcoin Cycle Shift to a Five-Year Rhythm?

CHAPTER 15 | The Evolving Thesis: Adapting to a New Macro Reality

Glossary of Key Terms

Mastering Bitcoin and Altcoins in The QE Cycle

LEGAL DISCLAIMER AND RISK WARNING

IMPORTANT NOTICE: READ CAREFULLY BEFORE PROCEEDING

The information, analysis, commentary, and opinions contained within this book are provided for informational and educational purposes only and are based on the author's research and interpretation of the subject matter.

THIS BOOK DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, LEGAL, ACCOUNTING, TAX, OR PROFESSIONAL ADVICE.

You should not rely on the contents of this book to make financial or investment decisions. Every individual's financial situation and risk tolerance are unique.

Readers are strongly advised to consult with a qualified, licensed financial advisor, tax professional, and/or legal counsel to determine the suitability of any investment strategy for their individual needs.

Cryptocurrency, digital assets, and investment markets are inherently volatile and speculative. Investing involves risk, including the possible loss of capital.

The author and publisher make no guarantees, assurances, or promises as to the level of success or any financial results that may be obtained from using the content of this book. Past performance is not indicative of future results.

The author and publisher have made every reasonable effort to ensure the accuracy of the information presented. However, they disclaim all liability for any errors, omissions, or inaccuracies that may be contained herein, or for any loss or damage incurred as a direct or indirect consequence of the use of or reliance upon this book's content.

Your use of the information contained in this book is at your own risk.

Copyright© Dwayne Anderson 2025

Table of Contents

Foreword:

Introduction: 

Chapter 1: The Liquidity Cycle and Why It Overrides Sentiment

Chapter 2: Anchor vs. Trade — Understanding the Two Money Engines

Chapter 3: The Mechanics of Liquidity Expansion: How Money Actually Enters the System

Chapter 4: The Prerequisite That Changed: How the Zero Bound Rule Was Broken and Why QE Is Now Allowed Before Rates Hit Zero

Chapter 5: The Countdown to the Money Flood — Three Locks That Turn QE into a Real Bull Market

Chapter 6: The Political Time Bomb—Why Washington Guarantees the Boom

Chapter 7: The Institutional Green Light—How Regulation Made Crypto Safe

Chapter 8: The Tech Revolution—Building Real-World Value on the Blockchain

Chapter 9: The New Gold Rush—Where the Next Retail Wave Will Buy

Chapter 10: The Final Confirmation—Securing Bitcoin's Place in History

Chapter 11: The Investment Strategy—BTC as the Investment, Alts as the Trade

Chapter 12: Chapter 12: The Complete 2026 Market Sequence: When the Tide Turns for Real 

Chapter 13: Cycle Psychology — The Emotional Clock of Liquidity

Chapter 14: Could the Bitcoin Cycle Shift to a Five-Year Rhythm?

Chapter 15- The Evolving Thesis: Adapting to a New Macro Reality

Foreword

The Cycle Has Evolved and the Sequence Now Matters More

For years, the story of Bitcoin and altcoins was told through a simple and comforting rhythm. Every four years, the halving arrived. Supply tightened. Prices consolidated, then broke out, then eventually overheated. That pattern shaped how an entire generation of investors understood crypto. It worked often enough to feel reliable, almost mechanical.

That rhythm has not disappeared. The halving still matters. It still reduces supply. It still reinforces Bitcoin’s long-term scarcity. What has changed is the environment in which that supply shock now operates.

Bitcoin is no longer a niche asset driven mainly by retail speculation and internal mechanics. Over the past few years, it has crossed an invisible threshold. It has become a macro asset. The approval of Bitcoin ETFs marked a structural shift, not just in access, but in behavior.

Institutional capital now flows into Bitcoin the same way it flows into equities, bonds, and commodities.

Allocation decisions are increasingly driven by liquidity conditions, interest rates, and portfolio rebalancing, not by crypto-native narratives alone.

This has quietly altered how cycles express themselves in price.

The halving still constrains supply, but it now operates inside a much deeper pool of capital. That pool expands and contracts based on central bank policy, fiscal decisions, and global risk appetite. As a result, Bitcoin no longer moves in isolation. It moves as part of the world’s liquidity system.

The December FOMC meeting made this shift impossible to ignore. Behind the careful language and technical framing was a clear signal. Liquidity is returning. Through a mechanism called Reserve Management Purchases, the Federal Reserve committed to adding roughly forty billion dollars per month into the system, with a schedule extending into April 2026.

Whether this is labeled quantitative easing or not is beside the point. The mechanics are clear. The balance sheet is expanding again. Bank reserves are rising. The direction of liquidity has turned.

For the first time, a Bitcoin cycle is unfolding where three powerful forces are active at the same time.

The halving is reducing new supply. ETFs are channelling institutional capital at scale. Central banks are moving away from restriction and back toward reserve expansion.

This combination has never existed before.It creates a market environment where Bitcoin may stabilize earlier than expected, where altcoins respond unevenly rather than all at once, and where rotations resemble patterns long familiar in traditional markets. Capital moves first into safety, then into growth, then into speculation. Liquidity does not arrive everywhere at once. It moves in sequence.

This book is written to help you understand and navigate that sequence.

In the chapters ahead, you will see how liquidity cycles shape Bitcoin’s behavior and why altcoins depend not just on Bitcoin itself, but on the broader flow of global balance sheets.

You will learn why some narratives fail repeatedly, not because they are wrong, but because the environment is not yet supportive. You will see how risk rotations often begin in precious metals and small caps, pass through Ethereum, and only later fully express themselves in Bitcoin and the broader altcoin market.

You will also learn that not all liquidity is equal. Timing matters more than headlines. Altcoin seasons are not spontaneous events driven by optimism. They emerge only when excess liquidity enters the system and seeks risk.

You will understand why Bitcoin’s structural levels matter more now than ever, and why institutional flows can temporarily overpower even well understood supply dynamics.

Most importantly, you will gain a framework that brings these elements together. Macro liquidity, crypto-specific mechanics, and risk rotation signals are not separate ideas. When viewed correctly, they form a single, coherent map. That map allows you to position ahead of liquidity waves instead of chasing them after the fact.

The goal of this book is simple. It is to help you understand how Bitcoin and altcoins behave in a liquidity driven world. A world where cycles are no longer governed by supply alone, but by the interaction of central banks, fiscal policy, institutional capital, and the halving’s enduring influence.

Welcome to the next phase of digital asset investing.

Welcome to the liquidity cycle.

And welcome to mastering Bitcoin and altcoins within it.

Introduction

Understanding the New Crypto Cycle Where Liquidity, ETFs, and the Halving Converge

If you have ever felt confused watching crypto markets rise when everything looks bleak, or collapse when optimism seems widespread, you are not alone. Nearly every investor, whether new or experienced, has faced moments when price action appears disconnected from logic, headlines, or expectation. One day Bitcoin rallies without a clear reason. The next day it sells off despite positive news. The explanations offered often sound confident, yet rarely feel satisfying.

That confusion exists because most people are looking in the wrong place.

Crypto does not move because of headlines. It does not move because of hype. It does not move because sentiment suddenly changes. Crypto moves because liquidity moves. Everything else, the narratives, the commentary, the social media explanations, exists on the surface while the real engine operates quietly underneath.

Liquidity is that engine. And this book is about understanding how it works.

For much of Bitcoin’s history, investors believed the crypto cycle followed a simple and elegant script. Every four years, the halving reduced new supply. Demand remained steady or increased. Prices rose. That framework worked well in the early years when crypto was a niche market dominated by retail participants and a limited number of institutions.

But markets evolve. And crypto has evolved.

As Bitcoin matured and entered mainstream financial structures, the four year script did not disappear, but it changed. The halving still matters, yet it is no longer the sole force shaping the cycle. It now operates within a much larger system driven by global liquidity.

The most important turning point came with the launch of Bitcoin ETFs. These products did more than add capital. They changed the nature of participation. Before ETFs, Bitcoin was largely influenced by internal crypto dynamics such as issuance cycles, exchange flows, retail sentiment, and speculative positioning. After ETFs, Bitcoin became a macro asset.

It began responding to interest rates, bond yields, recession expectations, and central bank signals. When the Federal Reserve spoke, Bitcoin reacted. When liquidity drained from the financial system, Bitcoin felt it early. When liquidity returned, Bitcoin began to rise before optimism had time to catch up.

This transformation explains why the current cycle feels different from those that came before. It is not because the halving stopped working. It is because the environment surrounding the halving has become deeper, more complex, and more interconnected with global financial conditions.

Bitcoin no longer moves in isolation. It moves within the same currents that influence equities, bonds, commodities, and currencies. And those currents are shaped primarily by liquidity.

Understanding that reality is the first step toward navigating modern crypto markets.

Liquidity can be understood without complex jargon. Imagine the financial system as a vast reservoir. When the water level rises, everything floats higher together. Strong assets rise. Weak assets rise. Even assets that do not deserve it rise. When the water level falls, everything sinks, regardless of quality or promise.

That water level is liquidity.

When central banks add liquidity through lower rates, balance sheet expansion, or reserve injections, the reservoir fills. When they remove liquidity through tightening, rate hikes, or balance sheet reduction, the reservoir drains. These shifts are rarely dramatic. They do not arrive with emotional headlines. They happen mechanically and gradually.

But they are decisive.

If liquidity is rising, the environment becomes supportive. If liquidity is falling, the environment becomes hostile. Everything else is secondary.

This brings us to one of the most important moments of the current cycle. During the December Federal Reserve meeting, a subtle but profound change occurred. Buried within technical language was the introduction of a policy called reserve management purchases. The phrase sounded administrative, almost boring. Yet in practice, it marked the return of balance sheet expansion.

For the first time since the tightening cycle began, the Federal Reserve committed to injecting liquidity into the system in a predictable and scheduled way. Roughly forty billion dollars per month would be added through Treasury bill purchases, with the initial phase extending into April 2026.

Regardless of how it is labelled, the mechanics are clear. Reserves are rising. The balance sheet is growing. The direction of liquidity has turned.

This matters because crypto suffered deeply during the prior tightening phase. For nearly two years, liquidity was drained steadily. Financial conditions tightened. Bitcoin struggled to sustain momentum. Ethereum drifted. Altcoins were hit relentlessly.

Narratives appeared again and again, but none took hold because the environment did not support them. Liquidity was simply too scarce.

Then, quietly, the faucet was turned back on.

Liquidity does not transform markets overnight. It works in stages. The first effect is stabilization. Selling pressure eases. Prices stop making new lows. The second effect is confidence. Accumulation replaces panic. The third effect is rotation, as capital begins moving from safer assets toward higher risk. The final effect, which takes the longest, is expansion, when liquidity reaches the edges of the system where altcoins live.

This sequence explains why crypto does not immediately explode higher after policy shifts. Liquidity takes time to circulate. But once it does, the structure of the cycle becomes visible.

Bitcoin ETFs add another layer to this process. Institutional flows respond to macro conditions, not excitement. When liquidity expands and relative attractiveness improves, allocations increase. These flows do not depend on viral narratives or short term enthusiasm. They depend on environment.

Liquidity expansion also changes behavior. When liquidity is tight, investors become defensive. They hesitate. They focus on risk rather than opportunity. When liquidity expands, that psychology shifts.

Fear gives way to curiosity. Caution turns into participation. Risk becomes tolerable again.

Liquidity shapes sentiment, not the other way around.

Altcoins, in particular, are deeply dependent on this process. They are not independent assets. They amplify the prevailing trend. When Bitcoin is strong and liquidity is expanding, altcoins outperform dramatically. When Bitcoin is weak or structurally uncertain, altcoins collapse.

Bitcoin is where institutional liquidity enters. It is the anchor of the system. Altcoins move only after that foundation is secure.

This is why liquidity expansion is essential. It allows Bitcoin to establish a structural uptrend. Once that happens, Ethereum strengthens relative to Bitcoin. Only then do altcoins begin to move meaningfully.

Without liquidity, there is no season. No narrative can override that reality.

The return of reserve management purchases changes the timeline of this cycle. For the first time, there is a visible and scheduled source of liquidity feeding into the system. This is not speculation. It is policy. And policy shapes markets.

When liquidity expansion aligns with ETF demand and a post halving supply reduction, the market enters a configuration that has never existed before. The halving no longer acts alone. It works alongside institutional flows and expanding reserves.

This does not eliminate volatility. Markets will still rise and fall. But the direction becomes clearer when liquidity is supportive.

The purpose of this introduction is not to turn you into a macro economist. It is to give you a lens. A way to see what matters before it appears on price charts.

By understanding liquidity, you learn how cycles form, how risk rotates, how Bitcoin leads, and how altcoins follow. You learn when patience is required and when aggression is justified. You stop reacting to noise and start anticipating structure.

Liquidity is the heartbeat of the financial system. It governs every expansion and contraction. And as the world enters a new phase of monetary accommodation under a new name, understanding liquidity is no longer optional.

The water level is rising again.

A new cycle is forming.