Abra CEO Bill Barhydt states that Fed liquidity injections will favor Bitcoin significantly this year. According to the executive, monetary easing will allow reviving the appetite for risk in global markets very soon. This scenario arises after a long period characterized by extremely tight financial conditions for active investors today.
Barhydt recently noted that the United States central bank is preparing the way for an expansive economic policy. During a speech on Schwab Network, he explained that there is a light quantitative easing process currently underway now. Therefore, the purchase of government bonds will generate fundamental support for the demand for assets.
Likewise, the expert projects that the demand for public debt will fall along with interest rates next year. This combination of financial factors usually is positive for the growth of all assets involved. In this way, the Fed liquidity injections will facilitate a much more dynamic investment environment.
In addition, clarity in American laws and institutional participation will act as engines of sustained growth. Barhydt considers that these conditions can extend the bull market beyond a single cycle. Therefore, the industry expects a professional consolidation stage for this popular cryptocurrency globally.
Towards a new paradigm of institutional stability in global financial markets
On the other hand, Matt Hougan from Bitwise suggests the asset will maintain a bullish trend during the decade. However, he warned that one should not expect the explosive rises of previous years anymore. Instead, the market will enter a period of constant returns with lower daily volatility.
It is also important to note that the financial sector is transitioning towards a mature investment model. Since capital movements now depend mostly on macroeconomic factors and institutional flows. Therefore, the Fed liquidity injections will be decisive for future success in the sector.
Can macroeconomic factors reverse the current price correction phase soon?
However, analyst Linh Tran warns about the corrective phase started after the 126,000 dollar peak. Bitcoin experienced a thirty-five percent drop due to current high interest rates in the market. In this way, the market requires liquidity conditions to improve substantially to recover fully.
To finish, the success of the first quarter of 2026 will depend on economic fundamentals and not on hype. Although ETFs manage million-dollar figures, the capital flow has become much more selective lately. Undoubtedly, the market awaits Fed liquidity injections to definitively take off in the future.
