Analyst: Fed Rate Cut and Weakening Dollar Could Fuel Bitcoin Rally in 2026

BlockBeats News, December 31st, according to Forbes, analysts predict that a Fed rate cut in 2026 and continued weakness in the US dollar will drive Bitcoin's price up. Data shows the dollar fell by nearly 10% in 2025, marking the largest annual decline since 2017. ING's Chief International Economist, James Knightley, stated that the Fed is currently in an accommodative mode. Additionally, Polymarket predicts a 96% probability of a rate cut before June next year; Trump has indicated a possible replacement of Fed Chair Powell in January next year to further lower the current 3.5%-3.75% interest rate level. Experts from Unchained and Clear Street believe that a loosening monetary policy will position Bitcoin as a primary beneficiary of dollar depreciation, becoming a key driver of crypto market growth in 2026.