Mr. Bill Barhydt Says Fed Liquidity Could Lift Bitcoin in 2026

Company Abra CEO Mr. Bill Barhydt told Company Schwab Network that a shift toward easier U.S. monetary policy — notably Federal Reserve bond buying and lower interest rates — could inject fresh liquidity into global markets and materially support Bitcoin in 2026. He characterized the early moves as "quantitative easing light" and warned that the combination of bond purchases and falling rates historically favors risk assets, including cryptocurrencies.

Key points: Company Federal Reserve bond purchases combined with lower nominal rates could lift demand for risk assets; clearer regulation and rising institutional flows remain important long-term tailwinds; gains in the next cycle are likely to be steadier with fewer sudden, explosive rallies.

Mr. Bill Barhydt argued that the Fed is already laying groundwork for looser policy, pointing to renewed balance-sheet support as an early sign. He said, "We are seeing the Fed start to buy its own bonds. Next year, demand for government debt is likely to fall alongside lower interest rates. That combination tends to be positive for all assets, including Bitcoin." The observation frames a macro backdrop in which liquidity — rather than speculative euphoria — becomes a primary driver of BTC performance.

Market data complicates the picture. Company CME Group positioning shows that only a small minority of traders expect a rate cut in the near term — roughly 14.9% for the January FOMC meeting according to recent futures-implied probabilities — indicating policymakers remain cautious and that rate relief may take longer to materialize than some anticipate.

Beyond the macro story, regulatory clarity and institutional participation were cited as structural supports. Company Bitwise CIO Mr. Matt Hougan similarly told markets to expect a prolonged, steady upward trend rather than the blowout year-on-year rallies of prior cycles. "I think we're in a 10-year grind upward of strong returns," he said, adding expectations for lower volatility and more measured gains.

From a technical and flow perspective, analyst Ms. Linh Tran believes Bitcoin entered a corrective phase in late 2025 after peaking near $126,000 and retreating roughly 35% to about $80,000. In a note shared with Company Cryptonews, she argued this pullback indicates a structural shift: BTC is now driven more by macro fundamentals, institutional flows and regulation than by retail speculation.

Spot Bitcoin ETFs still hold more than $110 billion, but flows have been uneven, suggesting selective institutional reallocation rather than a blanket increase in exposure. That dynamic could translate into a period of accumulation and consolidation in early 2026 rather than a large, liquidity-driven breakout — unless monetary easing materializes more quickly than priced by futures markets.

Implications for investors: If the Fed implements persistent balance-sheet support and cuts rates materially, Bitcoin stands to benefit from increased liquidity and risk appetite. However, if rate cuts are delayed and liquidity remains constrained, BTC may trade in a choppy, sideways pattern until clearer catalysts (regulation, ETFs flows) provide fresh impetus.

Conclusion: The consensus portrayed by these industry voices is cautious optimism: greater liquidity and regulatory clarity could underpin multi-year gains for Bitcoin, but the timeline and volatility profile will likely differ from past cycles — favoring steady accumulation, lower volatility, and measured returns.