CZ Says Trump Liquidity Push Could Fuel a Crypto Supercycle

Changpeng Zhao believes that a crypto supercycle is coming, helped by the ongoing liquidity push by Donald Trump. He said Bitcoin stayed in a bear market, and noted most altcoins also faced the same trend. They fell by over 20% from their 2025 highs.

CZ Predicts a Crypto Supercycle Driven by Trump’s Liquidity Push

Speaking in a recent interview, CZ said that there were rising odds that a crypto supercycle will happen this year. Donald Trump pushes for strong stock market gains. He drives economic growth to boost confidence.

He seeks positive momentum before the US midterm elections. That desire will push him to enact policies that will boost liquidity in the market.

Trump and other members of his administration have made several proposals to do that. First, they passed the Big Beautiful Bill in 2025, which provides several tax cuts. The effects of these cuts will be felt this year.

Second, Trump has said that Americans will have the biggest tax refund in years, thanks to the Big Beautiful Bill. This reduced individual income tax by $129 billion.

Analysts expect that the refunds will jump by between 15% and 20% this year. With this, some of these funds are being invested in the stock and crypto markets.

Third, Trump has made it a priority to give Americans a tariff dividend worth about $2,000 per taxpayer. As we saw during the pandemic, such a move would lead to a risk-on sentiment that benefits risky assets.

The president considers replacing Jerome Powell at the Federal Reserve. He plans to appoint an official who supports tax cuts and QE.

He acts while the economy continues to perform strongly. Trump is considering officials like Rick Rieder, Kevin Hassett, Kevin Warsh, and Christopher Waller.

A new Federal Reserve may push other officials to deliver more tax cuts this year. This will also lead to a risk-on sentiment and potentially, a crypto supercycle.

All this is happening as the amount of money in circulation, as measured by the M2 money supply, has continued rising. Also, it is now at an all-time high of $22.32 trillion. In most cases, risky assets do well when the M2 figure is rising.

More Catalysts for a Crypto Bull Market

Other potential catalysts may trigger a crypto supercycle this year. First, Bitcoin is showing some bullish signs on the daily and weekly charts.

The weekly chart below shows that the coin has formed an ascending channel since 2024. The recent pullback brought it to the lower side of this channel. This coincided with the bottom of the trading range of the Murrey Math Lines tool.

Therefore, there is a likelihood that it will bounce back, potentially to the strong pivot reverse point at $125,000 this year. Such a move will likely be bullish for Bitcoin and other altcoins this year.

Second, the Crypto Fear and Greed Index has rebounded from last year’s low of 10 to the neutral point at 50. Also, there is a likelihood that it will jump to the greed area.

In most cases, Bitcoin and other cryptocurrencies perform well when the index moves into the greed and extreme greed zones.

Third, Trump has proposed changes on how Americans invest their retirement funds, such as those in 401k accounts. One major change is that he wants them to be able to invest their funds in cryptocurrencies and private credit funds. Again, such a move will unlock trillions of dollars that will move to Bitcoin and other altcoins.

In summary, there are numerous catalysts that will make CZs forecast of a crypto supercycle to happen this year, including the soaring liquidity and other policies by the Trump administration.