Abra CEO: Fed liquidity, lower rates and clearer regulation could lift Bitcoin in 2026

Abra CEO Bill Barhydt said early signs of Federal Reserve balance-sheet support — “quantitative-easing light” — together with lower interest rates could inject liquidity and revive risk appetite, boosting Bitcoin in 2026. He cited potential Fed bond buying and falling rates as typical drivers for risk assets, and added that clearer U.S. regulation plus rising institutional demand are lasting tailwinds likely to produce steadier gains rather than sharp rallies. Market indicators temper that optimism: CME data shows only 14.9% of traders expect a January rate cut, down from 23% in November, suggesting policy easing may be delayed. Analysts (including Bitwise CIO Matt Hougan) expect long-term bullish but lower-volatility performance; one analyst noted Bitcoin’s ~35% pullback from a late-2025 peak near $126,000 to about $80,000, with U.S. rates around 3.5%–3.75% and easing more likely later in 2026. Spot BTC ETFs hold over $110 billion, but flows are uneven, indicating selective institutional reallocation rather than broad accumulation. Implications for traders: the macro combination of easier liquidity and clearer regulation supports a medium-term bullish outlook for BTC, but high rates, subdued ETF flows and political/regulatory risks argue for a period of accumulation and lower volatility in early 2026. Traders should monitor Fed balance-sheet moves, interest-rate expectations, ETF flows and institutional allocation shifts when positioning.