Bill Barhydt, CEO of Abra, anticipates that Bitcoin’s price could increase in 2026 due to a more accommodating monetary policy providing significant liquidity to the markets. However, some analysts remain cautious.
During an interview with the Schwab Network, Barhydt mentioned his expectation of considerable liquidity injections from the US Federal Reserve next year, as interest rates are lowered and quantitative easing could be revived, thus benefiting risk assets like Bitcoin. He added:
“Currently, we are witnessing a mild form of quantitative easing. The Fed is beginning to purchase its own bonds. I foresee that demand for government debt will decline significantly next year, coinciding with lower rates. This trend is favorable for all assets, including Bitcoin.”
He further stated that regulatory clarity in the United States, combined with an increase in institutional investment and falling interest rates, is likely to signify promising years ahead for BTC and the wider crypto market.
Currently, only 14.9% of investors foresee an interest rate cut at the upcoming Federal Open Market Committee (FOMC) meeting in January, a decrease from 23% in November, according to data from the Chicago Mercantile Exchange (CME) Group.
In contrast, several early Bitcoin adopters and analysts warn that 2026 may be another challenging year for BTC, suggesting it has entered a bear market that could persist for an extended period.
Related: Here’s what AI models project for Bitcoin and altcoin prices in 2026
Analyst predicts BTC may hit a low in 2026, while midterm elections pose a potential risk
According to early BTC investor Michael Terpin, 2026 may not be favorable for Bitcoin prices, with forecasts suggesting that BTC could drop to approximately $60,000 in the last quarter of that year.
A new chair of the Federal Reserve is anticipated to implement interest rate reductions, but the outcomes of the 2026 US midterm elections may counteract improved macroeconomic conditions, he stated.
“A midterm election result that isn’t a GOP sweep could severely hinder any further regulatory support,” Terpin remarked.
The likelihood of a GOP sweep according to prediction market Polymarket was 19% at the time of this writing, with 47% of traders speculating that each political party will control different chambers of Congress.
Joe Doll, general counsel at the NFT marketplace Magic Eden, previously noted to Cointelegraph that the balance of power tends to shift during US midterm elections.
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