What's Happening in the Global Markets? Systemic Liquidity Stress

In the first months of 2026, global markets are experiencing a wave of liquidations that go far beyond isolated issues in specific assets. The phenomenon is simultaneously affecting cryptocurrencies, stocks, and precious metals, reflecting a systemic mismatch in global liquidity conditions. According to analyses from specialized platforms like NS3.AI, this is more of a structural market problem than individual weaknesses in each sector.

Global Liquidity as a Central Issue

The systemic liquidity crunch is the true driver behind the massive sell-offs observed in global markets. Despite the Federal Reserve’s efforts to stabilize bank reserves through targeted interventions, these measures have failed to ease overall systemic stress. Long-term interest rates remain high, and general financial conditions continue to be restrictive, limiting capital availability across the asset spectrum.

This liquidity restriction triggers a mechanical deleveraging process. Investors and financial institutions are forced to liquidate positions even in potentially promising assets simply because access to financing has become more expensive and complicated. As a result, global markets are experiencing widespread selling pressures that transcend any specific economic narrative.

Persistent Volatility and the Waiting for Definitive Signals

Macroeconomic uncertainty intensifies this volatility in global markets. Investors are desperately seeking clear signs regarding future monetary policy decisions or changes in the economic outlook that could justify stabilization. Until those definitive indicators emerge, volatility is expected to continue haunting the markets.

Until there is clear evidence regarding the direction of monetary policy or obvious improvements in economic data, global markets will likely face intermittent selling pressures. Only then, when investors recognize a turning point, can a more sustained stabilization be anticipated.