Analyst: The Federal Reserve's interest rate cut expectations may trigger a rise in Bitcoin prices in 2026

According to Forbes, analysts warn that the dollar index will see its largest annual decline since 2017 in 2025, dropping nearly 10%. Due to expectations of interest rate cuts by the Federal Reserve, the dollar is expected to continue weakening in 2026. ING's Chief International Economist James Knightley stated that the Federal Reserve remains in an accommodative mode.

Although the meeting minutes show that policymakers have differing views on the future path, Polymarket predicts a 96% probability of interest rate cuts before June. Timot Lamarre, Director of Market Research at Unchained, believes that monetary easing will be beneficial for Bitcoin.

Owen Lau, Managing Director at Clear Street, stated that interest rate cuts will be a key catalyst for attracting retail and institutional investors to the crypto market in 2026.