Notable figures in the cryptocurrency sphere, CZ, co-founder of Binance, and Cathie Wood, CEO of ARK Invest, recently voiced their insights on the market’s future. As the Federal Reserve’s interest rate decision nears, the value of Bitcoin has surged to levels not seen for some time, surpassing $94,000. While it’s premature to conclude whether this signals a new trend or presents a selling opportunity, what do CZ and Wood see on the horizon for next year?
2026 Cryptocurrency Projections
The current trajectory suggests that if cryptocurrencies avoid a significant downturn in the coming year, the longstanding four-year Bitcoin cycle narrative might collapse. This could be advantageous, as the anticipation of a cycle-induced crash led investors to aggressively sell assets in October and November. Contrary to past patterns of rapid growth followed by steep falls, Bitcoin has displayed resilience, hinting that conventional cycles may not persist.
Cathie Wood discussed this possibility in a recent interview with Fox Business, echoing concern over cycle-related fears that have persisted for months. She asserts the typical cycle story is concluding, which may alleviate anxiety among investors wary of drastic market declines.
Wood further proposed that Bitcoin reached its recent low weeks ago and is unlikely to undergo the massive downturns of 75% to 90% previously typical. With volatility stabilizing, conventional bear markets may become a relic of the past, setting the stage for a robust recovery in cryptocurrencies next year.
CZ, meanwhile, shares similar outlooks, predicting a “super cycle” in 2026 that could prove transformative. According to him, the coming year may initiate the first of two unprecedented surges, surprising those who sold their holdings in October and November and rendering the four-year cycle narrative obsolete.
In 2022, figures like Celsius and 3AC were optimistic, though they missed broader institutional acceptance, significant crypto data assets, spot ETFs, supportive cryptocurrency policies from figures like Trump, and the growing trend of tokenization, all of which are now in play.
Bank of America’s Forecast
At the time of this writing, less than 26 hours remain before the Federal Reserve announces its interest rate decision, with expectations of a reduction to between 3.50% and 3.75%. Bank of America anticipates an additional move, forecasting a swift initiation of quantitative easing, envisioning a robust monetary expansion scenario.
Analysts predict monthly purchases of approximately $45 billion in short-term Treasury bills to safeguard bank reserves and prevent liquidity issues. This, coupled with MBS reinvestments, could bring the total monthly bond acquisitions to roughly $60 billion. These are termed “Reserve Management Purchases,” aiming not for credit stimulation but to ensure smooth money market operations, potentially paving the way for monetary expansion.
Nick Timiraos, whose forecasts often precede Fed meetings, questions whether Powell can achieve consensus with minimal opposition. He probes the nature of dissent regarding interest rate forecasts and the strength of hawkish signals ahead of potential January rate modifications.
Tomorrow will put these forecasts into focus. Follow COINTURK for live updates on Fed announcements and Powell’s address.