Bitcoin's price could rise in 2026 as monetary policy easing injects “massive” liquidity into markets, in response to Bill Barhydt, CEO of crypto exchange and wallet company Abra, although other analysts have struck a more cautious tone.
Speaking to Schwab Network, Barhydt said he expects a “ton” of liquidity injections from the Federal Reserve next 12 months as policymakers proceed to chop rates of interest, potentially revive quantitative easing and boost risk assets like Bitcoin, adding:
“We are currently seeing some quantitative easing. The Fed is beginning to buy its own bonds. I feel demand for Treasuries will fall significantly next 12 months, together with lower rates of interest. All of this bodes well for all assets, including Bitcoin.” Bill Barhydt, CEO of Abra, offers a forecast for the BTC and crypto markets in 2026. Source: Schwab Network
U.S. regulatory clarity and growing institutional investment combined with lower rates of interest likely mean BTC and the broader crypto market have “a number of more years to go,” he added.
Only 14.9% of investors expect a rate cut at the following Federal Open Market Committee (FOMC) meeting in January, in comparison with 23% of respondents surveyed in November, in response to data from the Chicago Mercantile Exchange (CME) Group.
Interest rate probabilities for the January FOMC meeting. Source: CME Group
The optimistic price forecast has been contradicted by early Bitcoin adopters and analysts who say that 2026 might be one other bearish 12 months for BTC and that Bitcoin has entered a bear market that might last for months or years.
Analysts consider BTC could bottom in 2026 and the US midterm elections pose a risk
2026 will likely be a foul 12 months for Bitcoin prices, in response to early BTC investor Michael Terpin, who predicted that BTC could bottom at around $60,000 in the ultimate quarter of 2026.
A brand new Federal Reserve chairman can be expected to chop rates of interest, but higher macroeconomic conditions may very well be offset by the outcomes of the 2026 U.S. midterm elections, he said.
“Anything aside from a Republican victory within the midterm elections will cripple further ease of regulation,” said Terpin.
Odds for the 2026 US midterm elections. Source: Polymarket
The probability of a Republican victory on prediction market Polymarket was 19% on the time of writing, with 47% of traders betting on each political party controlling a chamber of Congress.
Joe Doll, general counsel at non-fungible token (NFT) market Magic Eden, previously told Cointelegraph that the balance of power “almost at all times” flips during U.S. midterm elections.
