Fed Rate Cuts and Liquidity Recovery: A Tailwind for the Cryptocurrency Market by 2026?

Cryptocurrency research firm Delphi Digital has analyzed that the year 2026 could be advantageous for the cryptocurrency market due to ongoing Fed rate cuts, among other factors.

The Federal Reserve's continued rate cuts, coupled with the end of quantitative tightening (QT), drawdowns of the Treasury General Account (TGA), and the depletion of the Reverse Repo Facility (RRP), are set to create a net increase in liquidity for the first time since early 2022.

This shift in financial policy from headwinds to mild tailwinds is expected to create favorable conditions for long-term bonds, large-cap stocks, gold, and demand-driven digital assets.

This analysis indicates...