The relationship between the Fed and Bitcoin is an inverse correlation in terms of liquidity, particularly important in the context of early 2026:
• Interest rates and capital flows: When the Fed lowers interest rates, borrowing costs decrease, causing the USD to typically weaken. Investors tend to abandon safe assets (bonds) in favor of high-yield risky assets like Bitcoin. Conversely, the Fed maintaining high interest rates (3.5% - 3.75%) as it currently does is putting pressure on BTC prices to adjust in the short term (currently testing the $80,000 mark).
• Bitcoin is "Digital Gold": In a loose monetary environment, Bitcoin is seen as a hedge against inflation and the depreciation of fiat currency.
• Expectations for 2026: The market expects a new easing cycle and the emergence of pro-crypto officials at the Fed will be the "catalyst" for Bitcoin to conquer new heights.$BTC
$AXS
$LINEA
