This year, Bitcoin and liquidity will loosen, and a rally will begin

Source: HanKyungBlockchain Original Title: “Bitcoin to Start Rally This Year as Liquidity Unfreezes”

Original Link: https://www.hankyung.com/article/202601027461B

As liquidity is supplied to the global market through the easing of the US Federal Reserve(Fed) and Federal Reserve('s monetary policy, forecasts suggest that Bitcoin will benefit this year. It is expected that risk asset investment sentiment, which had been subdued by tightening policies, will be revived.

Bill Vahitt, CEO of Abra)CEO(, stated in an interview with Swap Network, “The Fed is already laying the groundwork for an accommodative policy.”

CEO Vahitt recently described the Fed’s moves as a “quantitative easing)QE( lite version.” He explained, “The Fed has started purchasing bonds on its own to support demand for government bonds,” and added, “Next year, with falling interest rates, demand for government bonds is likely to decrease, and this combination is a positive signal for all assets, including Bitcoin.”

In addition to liquidity supply, he pointed to regulatory clarity in the US and increased participation of institutional investors as driving forces for the rally. Vahitt said, “With low interest rates and clearer regulations, the digital asset market will see strong growth over the next few years,” and predicted that this rise will not be a one-time cycle.

However, some experts caution that it is too early to expect a sharp interest rate cut immediately. According to CME)CME( FedWatch, traders see a 14.9% chance of rate cuts at the January Federal Open Market Committee)FOMC( meeting. This is a significant decline from 23% in November, indicating that the market may expect a delay in the monetary policy pivot)pivot(.

There is also a cautious view that Bitcoin will experience a stable, upward trend rather than explosive surges. Matt Hogan, CIO of Bitwise)CIO, said in a recent interview, “Bitcoin will show a strong but gradual increase over the next 10 years.” He added, “Investors should expect lower volatility and stable performance rather than the explosive returns seen in past cycles.”