5 Reasons Q1 2026 Could Spark the Biggest Crypto Bull Run Yet

Core Viewpoint - Analysts are predicting a potential bullish trend for cryptocurrencies, particularly Bitcoin, in Q1 2026, driven by several macroeconomic factors that could lead to significant price increases [1][2]. Group 1: Macroeconomic Trends - The end of the Federal Reserve's quantitative tightening (QT) is expected to remove a headwind for risk assets, historically leading to a potential Bitcoin rally of up to 40% when central banks stop contracting their balance sheets [3]. - Interest rate cuts are anticipated to resume in 2026, with forecasts suggesting rates could drop to between 3% and 3.25%, which typically enhances liquidity and increases interest in speculative assets like cryptocurrencies [4]. - Improved short-end liquidity is expected as the Fed plans to start technical buying of Treasury bills to manage market liquidity, easing funding pressures and potentially reducing short-term rates [5][6].