 
 
As November trading begins, debate is intensifying on whether the market is entering a new bearish phase or merely preparing for its next expansion cycle.
Crypto investor Lark Davis made an X post analyzing prominent analyst Sykoledic, who dismissed the idea that a bear market is forming under current macro conditions.
According to Sykoledic, “bear markets don’t start on the precipice of global liquidity expansion,” emphasizing that the global economy is experiencing its most favorable liquidity environment in years.
He pointed to several major liquidity injections as evidence: the U.S. Treasury General Account (TGA) currently sits at $1 trillion, Japan has rolled out a 100 billion yen stimulus, the People’s Bank of China (PBOC) injected 900 billion yuan, and the Federal Reserve recently added $50 billion into its repo markets.
Sykoledic argued that the ongoing crypto cycle has so far evolved under restrictive liquidity, which explains why only Bitcoin has reached new highs through adoption and institutional acceptance.
 
Altcoins, he said, have lagged because they depend heavily on abundant liquidity to thrive. “Liquidity is coming to the system and it’s coming in droves,” he said, adding that this expansion is inevitable given the global financial setup.
He also linked current global trends to the delay in the crypto markets’ rally. With stocks surging on the AI boom, gold topping out amid easing geopolitical tensions, and trade risks declining, he believes the environment now favors risk assets like crypto.
“If you are calling for a bear market,” he noted, “you need to understand the liquidity situation,” Psychedelic wrote, stating that the current market situation is the “total opposite” of what triggers real downturns.
Supporting this sentiment, on-chain data shows structural strength in major crypto ecosystems. Analyst Leon Waidmann highlighted that Ethereum’s total value locked (TVL) has surged to $379 billion, a 16-fold increase since 2020.
Despite ETH’s relatively soft price performance, this growth in liquidity, lending, and staking signals solid fundamentals and limited downside risk.
