The Fed’s twenty five basis point rate cut in December has shifted market expectations toward the first clear signs of net liquidity growth heading into 2026.
According to Delphi Digital, the Fed lowered its policy rate to the 3.50 to 3.75 percent range at the December meeting, while the forward curve now prices at least three additional cuts through late 2026. Analysts note that rates drifting toward the low 3 percent zone signal easing conditions for risk assets after a long period of pressure.
Liquidity dynamics are also turning. With QT ending on December 1, a drawdown in the Treasury General Account, and the RRP facility fully depleted, net positive liquidity has emerged for the first time since early 2022. Delphi Digital suggests this shift could turn what was once a macro headwind for crypto into a mild supportive current for 2026.
The improving liquidity backdrop offers a constructive medium term outlook for crypto. As QT winds down and money market support increases, Delphi Digital says price behavior in 2026 may see stronger macro reinforcement.
