Federal Reserve to Ease Policy by 50 Basis Points in 2026

Market players anticipate the Federal Reserve will reduce monetary policy by 50 basis points in 2026, based on expectations revealed by CME FedWatch and macro research insights.

This anticipated rate easing may lower funding costs for financial entities, potentially impacting allocations toward cryptocurrencies such as Bitcoin and Ethereum.

Federal Reserve’s Planned 2026 Rate Cut

Financial markets may see a variety of responses, with the easing possibly lowering the cost of capital and boosting valuations across risk assets, including cryptocurrencies like Bitcoin and Ethereum. Analysts like George Bory of Allspring Global Investments describe these cuts as “mid-cycle adjustments,” indicating a gradual policy shift.

Bitcoin (BTC) stands at $90,632.67 with a market cap of $1.81 trillion and a dominance rate of 58.47%, according to CoinMarketCap data. Despite a 12.13% decrease in trading volume, Bitcoin shows a 0.87% rise over the last 24 hours, while holding a circulating supply of 19,973,575 and a max supply of 21 million.

Coincu analysts predict that if the Federal Reserve proceeds with two rate reductions in 2026, we may see institutional rebalancing towards risk assets, including cryptocurrencies such as BTC and ETH. Potential impacts include increased demand for these digital assets, driven by reduced real yields and enhanced liquidity conditions. Federal Reserve rate cuts may thus significantly bolster crypto markets.

Potential Ripple Effects on Crypto Markets

Did you know? The Federal Reserve’s expected 50 basis point cut echoes the 2019 “mid-cycle adjustment” which resulted in significant market shifts and increased risk-on sentiments.

Bitcoin (BTC) stands at $90,632.67 with a market cap of $1.81 trillion and a dominance rate of 58.47%, according to CoinMarketCap data. Despite a 12.13% decrease in trading volume, Bitcoin shows a 0.87% rise over the last 24 hours, while holding a circulating supply of 19,973,575 and a max supply of 21 million.

Coincu analysts predict that if the Federal Reserve proceeds with two rate reductions in 2026, we may see institutional rebalancing towards risk assets, including cryptocurrencies such as BTC and ETH. Potential impacts include increased demand for these digital assets, driven by reduced real yields and enhanced liquidity conditions. Federal Reserve rate cuts may thus significantly bolster crypto markets.