Fed Q1 2026 Outlook and Its Potential Impact on Crypto Markets
Cointelegraph
The Fed's Q1 2026 policy, including potential rate pauses or 'stealth QE,' will significantly influence Bitcoin and Ether prices.Summary
Despite the Federal Reserve cutting rates three times in late 2025, crypto markets sold off, suggesting liquidity dynamics are more crucial than rate cuts alone for Q1 2026. If the Fed pauses further cuts due to inflation concerns, Bitcoin could drop to $70,000 and Ether to $2,400, according to Jeff Mei of BTSE. However, the Fed's shift to ending quantitative tightening and initiating Reserve Management Purchases (RMPs)—a form of "stealth QE"—could inject liquidity. If these RMPs continue into Q1 2026, they might stabilize crypto prices, potentially pushing Bitcoin toward $92,000-$98,000 and Ethereum toward $3,600, supported by ETF inflows and DeFi activity.
(Source：Cointelegraph)