Binance report: The expectation that the Federal Reserve will accelerate interest rate cuts in 2026 is good for Bitcoin, and January may be a turning point for the bearish momentum.

PANews reported on January 8 that Binance Research pointed out in its January crypto market report that in December 2025, despite the Federal Reserve’s easing policies, the crypto market continued to decline due to the cautious sentiment of investors. However, Bitcoin and Ethereum’s market dominance continues to grow as asset managers continue to accumulate holdings. January could mark a turning point in bearish momentum as investors consider a return to cryptocurrencies from the overvalued asset class. In 2025, metals will become an outstanding asset class, driven by factors such as monetary easing, AI demand, and the shift to "commodity control." While Bitcoin benefited from similar macro tailwinds, its fourth-quarter performance was divergent due to a lack of “strategic asset premiums.” However, this divergence may be temporary: with U.S. legislation pushing to institutionalize strategic Bitcoin reserves and potentially moving away from holding seized assets toward active fiscal purchases, Bitcoin’s valuation framework is expected to realign with that of strategic metals.

Market participants expect policy easing to accelerate in 2026, driven by factors such as tariff shocks, labor market fragility and a dovish leadership shift, while demanding a higher long-term premium to compensate for "fiscal dominance" and looming debt pressures of more than $50 trillion. The steepening yield curve signals that the market does not buy into the Fed's "soft landing" narrative, creating a perfect opportunity for Bitcoin to both take advantage of the influx of cheap liquidity in the short term and benefit from the erosion of fiat credit in the longer term. Since their launch, altcoin ETFs have mostly attracted net inflows, with cumulative inflows exceeding $2 billion, led by XRP and SOL, with other assets also contributing smaller but steady inflows. In contrast, Bitcoin and Ethereum spot ETFs have continued to experience net outflows since October, highlighting the divergence of marginal demand as market momentum slows. Although it is still early days, more altcoin ETF approvals and continued inflows may increasingly impact liquidity distribution, especially if broader market inflows re-accelerate. In 2025, the market value of six newly launched stablecoins will exceed US$1 billion. As stablecoins continue to be used around the world, their related indicators are increasingly becoming an important benchmark for measuring global financial activities.

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