The global financial system runs on a delicate balance: as debt grows, liquidity needs to grow too, or the machine stalls. Right 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 system. When liquidity is abundant, it drives inflation. But when liquidity falls short, funding pressure rises and risk assets — like equities and crypto — become vulnerable . The last time liquidity ratios fell this low was just before the 2019 repo crisis. Back then, markets looked strong on the surface, yet stress behind the scenes forced the Fed into emergency interventions. This doesn’t necessarily mean an imminent collapse, but it highlights fragility in the financial plumbing . If debt keeps racing ahead of liquidity, we could see funding stress resurface. For 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.