Bitcoin’s 2026 Ascent: Fueled by Fed Liquidity and Monetary Policy Shift

In a compelling forecast for the digital asset market, Abra CEO Bill Barhydt has positioned 2026 as a pivotal year for Bitcoin, driven primarily by anticipated shifts in U.S. monetary policy. Barhydt predicts that the Federal Reserve's move towards an easing cycle—characterized by renewed liquidity injections, bond purchases, and lower interest rates—will act as a powerful catalyst for Bitcoin's price appreciation. This outlook hinges on the transition from a prolonged period of tight financial conditions to a more accommodative stance, which is expected to revitalize risk appetite across global markets. Barhydt describes the current, nascent phase of this shift as "quantitative easing light," noting the Fed's subtle yet significant role in supporting government debt demand. This environment, where fresh liquidity enters the financial system, historically creates favorable conditions for non-traditional, high-growth assets like Bitcoin. The analysis suggests that as traditional monetary tools are deployed to stimulate the economy, capital is likely to seek higher-yielding opportunities, with bitcoin standing to be a major beneficiary. This perspective reinforces the growing narrative of Bitcoin as a macro-economic hedge and a forward-looking asset sensitive to global liquidity flows. With regulatory clarity also emerging as a supporting factor, the convergence of monetary easing and improved regulatory understanding could set the stage for significant gains in the cryptocurrency sector, with Bitcoin at the forefront of this potential rally.

Fed Liquidity Injections to Fuel Bitcoin Gains in 2026, Abra CEO Says

Abra CEO Bill Barhydt anticipates Bitcoin will benefit from easing monetary policy in 2026, as fresh liquidity enters global markets. The Federal Reserve's bond purchases and lower interest rates are expected to revive risk appetite after prolonged tight financial conditions.

Barhydt describes the current environment as "quantitative easing light," with the Fed subtly supporting government debt demand. Regulatory clarity and institutional participation could further extend Bitcoin's upside beyond a single cycle, setting the stage for sustained digital asset growth.

Market expectations, however, suggest policymakers remain cautious in the NEAR term. The interplay of liquidity, regulation, and institutional demand will likely shape Bitcoin's trajectory in the coming years.

Bitcoin May Have Entered Bear Market Two Months Ago, CryptoQuant Suggests

Bitcoin's prolonged slump below key technical indicators suggests the cryptocurrency may have transitioned into bearish territory as early as November. CryptoQuant's head of research Julio Moreno identifies the breach of the one-year moving average - a critical trend benchmark - as the decisive confirmation.

Multiple on-chain metrics in CryptoQuant's bull score index have flashed warnings for weeks. The composite gauge, tracking network activity, investor profitability, and market liquidity, continues to reflect deteriorating conditions. "For me, the last confirmation is the price going below its one-year moving average," Moreno stated during a Milk Road appearance.

Analysts now watch the $56,000-$60,000 range as a potential bottoming zone. The moving average violation mirrors previous bear market transitions, with Bitcoin's inability to reclaim this level reinforcing the downtrend narrative. Market structure appears to validate the thesis, though some traders await confirmation through sustained lower highs.

Bitcoin Breaks 4-Year Cycle with First Post-Halving Annual Loss

Bitcoin has defied historical expectations by closing 2025 with a 6% annual loss, marking its first decline following a halving event. The cryptocurrency, now trading near $88,700, has diverged from its traditional four-year cycle that previously fueled bull markets in 2013, 2017, and 2021. This shift suggests a maturation of the asset class, where ETF flows, institutional capital, and macro liquidity conditions are increasingly driving price action rather than halving-driven scarcity narratives.

The break from tradition underscores Bitcoin's evolving role in global finance. Once a retail-dominated asset with predictable cyclicality, it now behaves more like a macro instrument—reacting to Federal Reserve policy shifts and institutional positioning. The October peak of $126,000 feels distant, but the $88,700 support level hints at underlying institutional demand despite the annual loss.

Bitcoin's 17th Birthday: A Pivotal Moment for Crypto Markets

Bitcoin approaches its 17th anniversary on January 3, 2026—a milestone few predicted during its chaotic early years. Traders now debate whether this symbolic event could catalyze the next bull run, as institutional adoption reaches unprecedented levels.

The cryptocurrency's origin story remains foundational: born from a 2008 whitepaper during the financial crisis, its genesis block mined in 2009 created the first decentralized monetary system. Early milestones like the 2010 'Bitcoin Pizza Day' demonstrated real-world utility, while the 2024 spot ETF approvals marked Wall Street's endorsement.

Market technicians note Bitcoin's price action often accelerates around halving cycles and symbolic dates. With the 17-year mark coinciding with post-ETF liquidity inflows, some analysts draw parallels to 2017's retail frenzy and 2021's institutional wave.

Bitcoin Miner Cango Secures $10.5M Funding Amid 'Severely Undervalued' Rating

Enduring Wealth Capital Limited (EWCL) has committed an additional $10.5 million to Bitcoin miner Cango, building on its $70 million June 2025 funding agreement. The investment will see EWCL acquire 7 million Class B shares at $1.50 each—a 20% premium to Cango's $1.25 baseline share price.

Analysts remain bullish, with HCW targeting $3/share and Greenridge projecting $4. Market observers interpret the oversubscribed funding as a signal of unrealized upside potential. Upon January closing, EWCL's stake will rise from 2.81% to 4.69%, with voting power increasing from 36.68% to 49.61%.

The capital injection supports Cango's 50 EH/s mining operations and AI initiatives as EWCL positions the firm to lead Bitcoin mining's evolving landscape.

Saylor’s Bitcoin Bet Faces Scrutiny as Strategy Reports Historic $17.5B Loss

Michael Saylor’s corporate Bitcoin strategy has drawn sharp criticism after revealing a $17.5 billion GAAP loss in Q4 2025—the largest quarterly loss in corporate history. The decline followed Bitcoin’s retreat below $100,000, exposing the risks of Saylor’s all-in crypto approach.

MicroStrategy’s MSTR stock mirrored Bitcoin’s volatility, plummeting nearly 50% in 2025 from its $450 peak. Economist Peter Schiff noted the stock WOULD rank among the S&P 500’s worst performers had it been included, calling the BTC-focused strategy "shareholder value destruction."

Yet the narrative isn’t one-dimensional. Those same Bitcoin holdings previously fueled record earnings in Q2 and Q3, demonstrating crypto’s double-edged nature for corporate balance sheets. The market now watches whether Saylor’s conviction will weather this storm—or serve as a cautionary tale.