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Analyst: Fed Rate Cut and Weakening Dollar Could Fuel Bitcoin Rally in 2026

2025.12.31 20:54:47

On December 31st, Forbes reported that analysts expect a 2026 Federal Reserve rate cut and ongoing U.S. dollar weakness to push Bitcoin prices higher. Dollar data shows the greenback fell nearly 10% in 2025—its largest annual decline since 2017. ING Chief International Economist James Knightley noted the Fed is currently in an accommodative stance. Meanwhile, Polymarket pegs the probability of a rate cut before June 2026 at 96%. Former President Trump has signaled he may replace Fed Chair Jerome Powell in January 2026 to further lower the central bank’s current 3.5%-3.75% interest rate range. Experts at Unchained and Clear Street argue looser monetary policy will position Bitcoin as a top beneficiary of dollar depreciation, making it a key driver of crypto market growth in 2026.
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