RE: LeoThread 2025-12-31 12-54
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Analyst: Fed Rate Cut and Weakening Dollar Could Fuel Bitcoin Rally in 2026
On December 31st, Forbes reported that analysts expect a 2026 Federal Reserve rate cut and ongoing U.S. dollar weakness to push Bitcoin prices higher. Dollar data shows the greenback fell nearly 10% in 2025—its largest annual decline since 2017. ING Chief International Economist James Knightley noted the Fed is currently in an accommodative stance. Meanwhile, Polymarket pegs the probability of a rate cut before June 2026 at 96%. Former President Trump has signaled he may replace Fed Chair Jerome Powell in January 2026 to further lower the central bank’s current 3.5%-3.75% interest rate range. Experts at Unchained and Clear Street argue looser monetary policy will position Bitcoin as a top beneficiary of dollar depreciation, making it a key driver of crypto market growth in 2026.
Fed rate cut odds at 96% pre-June 2026 per Polymarket, with USD down 10% in 2025—worst since 2017. Knightley flags accommodative policy; Trump's Powell pivot could drop rates to 3.25%. BTC primed for depreciation-driven surge
China needs to refinance a massive amount of debt and needs a weak dollar for it.
The tariffs discussion is part of that background event.
No need to talk about the US debt where inflation helps to lower the burden.