Bitcoin’s price could rise in 2026 as easing monetary policy injects “massive” liquidity into markets, according to Bill Barhydt, CEO of crypto exchange and wallet firm Abra, although other analysts issue more cautious notes.
Speaking to the Schwab Network, Barhydt said he expects a “ton” of liquidity injections from the U.S. Federal Reserve next year as policymakers continue to cut interest rates, which could potentially revive them. quantitative easing and strengthen risk assets such as Bitcoin, adding:
“We are currently seeing the light on quantitative easing. The Fed is starting to buy its own bonds. I think demand for government debt will decline significantly next year, along with lower rates. This all bodes well for all assets, including Bitcoin.”
Regulatory clarity in the United States and growing institutional investmentcombined with lower interest ratesThis likely means BTC and the broader crypto market are here for “a good few years,” he added.
Only 14.9% of investors expect an interest rate cut at the next Federal Open Market Committee (FOMC) meeting in January, compared to 23% of respondents in November, according to data of the Chicago Mercantile Exchange (CME) group.
Bullish price predictions have been countered by Bitcoin early adopters and analysts who claim that 2026 will be another down year for BTC and that Bitcoin has entered a bear market it can last for months or years.
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Analyst Says BTC Could Bottom in 2026, US Midterm Elections Pose Risk
2026 will probably be a bad year for Bitcoin pricesaccording to early BTC investor Michael Terpin, who predicted that BTC could bottom around $60,000 in the last quarter of 2026.
A new Federal Reserve chairman is also expected to ease interest rates, but improving macroeconomic conditions could be offset by the results of the 2026 U.S. midterm elections, he said.
“Anything other than a Republican Party sweep in the midterms would cripple friendlier regulations,” Terpin said.
Chances of a GOP Sweep in the Prediction Market Polymarket were 19% at the time of writing, with 47% of traders betting on each political party controlling a chamber of Congress.
Joe Doll, the general counsel of non-fungible token (NFT) marketplace Magic Eden, previously told Cointelegraph that the the balance of power “almost always” shifts in the mid-term elections in the United States.
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