Bitcoin recovery expected as liquidity conditions change, but US macro remains a threat
Bitcoin’s recent weakness reflects broader economic stress, but improving liquidity and investors’ positive outlook for 2026 could set the stage for a strong rebound.
Key takeaways:
Federal Reserve balance-sheet limits and possible repo operations point to improving liquidity conditions that could boost Bitcoin and other risk assets.
Fiscal strain and sector weakness currently weigh on markets, but easing tariffs and a targeted stimulus plan may support a recovery in crypto demand.