Bitcoin Outlook for 2026: Fed Liquidity Shifts and Short-Term Funding Stress Shape Early Rebound Prospects

As 2025 ended, a record $74.6 billion draw on the Federal Reserve's Standing Repo Facility and renewed Treasury bill purchases signaled easing liquidity conditions. Traders now see Bitcoin's short-term price increasingly driven by funding and credit dynamics rather than internal crypto events. If these supportive conditions continue into early 2026, Bitcoin could start recovering ahead of traditional risk assets as confidence slowly returns.