Fed is ending QT, Trump is calling for a massive rate reduction, and more.Fed is ending QT, Trump is calling for a massive rate reduction, and more.

Why 2026 Could Be a Dream Year for Investors: And Where Bitcoin Fits In?

In hindsight, 2025 was already an incredible year for (almost) all investment assets. Unless there’s enhanced volatility in the few remaining days of 2025, the S&P 500 is about to close with an 18% surge, the Nasdaq Composite with a 22% increase, and the Dow Jones Industrial Average with a 15% jump.

And then, there are the precious metals. The two largest – gold and silver – had their best year to date, with multiple new all-time highs. Gold is up by 75% YTD, while silver has become the third-largest global asset after a 172% surge since January’s opening price as its market cap has shot up to $4.5 trillion.

If there’s one big disappointing asset class, it’s actually cryptocurrencies. Although BTC and several altcoins marked fresh peaks throughout the year, most are about to end 2025 in the red. But now, the popular analysts at the Kobeissi Letter believe 2026 will be even better, and the question is: can crypto overperform?

2026 to Be Incredible?

Some of the reasons why the analysts believe investors should expect a massive 2026 include the AI boom, including the China-US war on it, the mass deregulation in the sector, midterm elections in the States, growing retail participation in certain markets, and the Fed’s policy.

The US central bank has already reduced the key interest rates three consecutive times in 2025, and it ended its quantitative tightening policy. It’s expected to continue cutting the rates next year, especially with a new Fed Chair on board. Trump has called for 1% interest rates and has also promised stimulus checks from the tariffs.

Will Crypto Join?

As mentioned above, bitcoin and the altcoins have mostly underperformed on an annual basis. If all the factors above align, risk-on assets like the digital asset industry should thrive, at least in theory, especially if US borrowing becomes even cheaper, and other asset classes, such as precious metals and stocks, reach a decisive peak.

Experts anticipate capital rotation into more lucrative industries, including crypto. AI would likely continue to be the most favorable niche, but BTC has become a lot more legitimate among institutional investors, especially since the Trump administration took office.

In any case, 2026 is indeed shaping up to be quite eventful for all financial markets, but bitcoin and the altcoins have a long path to catch up after the controversial 2025. Or, perhaps they now have more room for growth.

The post Why 2026 Could Be a Dream Year for Investors: And Where Bitcoin Fits In? appeared first on CryptoPotato.

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