Coinbase: Liquidity Boost and Fed RMP Could Set Up a Strong 2026 for Crypto
Coinbase Institutional forecasts a liquidity-driven tailwind for crypto into early 2026. Following the Fed’s 25bp cut and plans for reserve management purchases (RMP) of U.S. T‑Bills, Coinbase expects reserve growth to continue through April 2026, describing the shift as a form of "light quantitative easing" or "stealth QE." Fed funds futures imply two additional cuts (≈50bps) in the first nine months of 2026, a less hawkish outlook that Coinbase says is supportive for cryptocurrencies. Bitwise CEO Hunter Horsley echoed optimistic sentiment, calling market developments evidence that conditions are "lining up for a massive 2026," and noting that 2025 has effectively been a bear market since February despite buying pressure from institutional players. Market context: crypto suffered a multi-week sell-off starting in October that liquidated roughly $19 billion of leveraged positions. Glassnode metrics point to a "mild bearish phase" with modest inflows offset by steady selling from large holders; Bitcoin remains near the lower bound of its recent range and faces resistance from sellers who bought near October highs. Key implications for traders: the combination of Fed easing expectations and RMPs is a bullish macro liquidity signal for risk assets, potentially improving capital flows into crypto, but persistent on-chain selling and recent deleveraging warn of continued short-term volatility. Primary keywords: Coinbase prediction, liquidity boost, Fed RMP, crypto 2026; Secondary keywords: reserve growth, stealth QE, Bitcoin, institutional flows.
Bullish
The article highlights macro liquidity improvements — Fed rate cuts, reserve management purchases (RMP) of T‑Bills, and futures-implied further cuts — which historically support risk assets including crypto by increasing capital availability and lowering funding costs. Coinbase frames RMP as "light QE," a bullish narrative that can attract institutional and retail inflows into crypto. Bitwise’s bullish outlook reinforces the expectation of improved market conditions in 2026. However, near-term risks remain: October’s deleveraging and Glassnode’s "mild bearish phase" indicate selling pressure from large holders and potential for volatility. Short-term traders should expect choppy price action and possible sell-the-rally behavior; swing and position traders may view improving liquidity as a favorable backdrop for accumulation on weakness. In past cycles, central-bank liquidity injections (or expectations thereof) have preceded multi-month rallies in risk assets, but durable crypto rallies typically require on-chain demand recovery and reduced net selling from large holders. Overall, the macro direction is bullish for 2026, while short-term market structure and on-chain supply dynamics could temper or delay significant upside.