As global policymakers confront slowing growth, rising debt burdens, and increasingly fragile conditions, the macroeconomic backdrop heading into 2026 is once again shifting toward looser constraints. History suggests that periods defined by expanding liquidity, whether through direct stimulus, regulatory adjustments, or balance-sheet accommodation, tend to reshape capital allocation across asset classes, with digital assets often emerging as a secondary beneficiary of broader monetary expansion.
Bitcoin’s performance across previous cycles underscores its sensitivity to capital availability rather than isolated crypto-specific catalysts. During periods of sustained M2 growth, Bitcoin has historically appreciated as excess liquidity seeks alternative stores of value and higher-beta exposure. The mechanisms that unlock capital, bank balance-sheet flexibility, sovereign debt issuance, and accommodative regulatory frameworks have repeatedly coincided with renewed interest in scarce digital assets, positioning Bitcoin as a downstream expression of macro liquidity rather than a purely speculative trade.
That dynamic was highlighted by Raoul Pal, co-founder and CEO at Real Vision, during Binance Blockchain Week 2025. He emphasized that “Lowering risk weights on Treasuries lets banks buy an unlimited amount of bonds. This is liquidity creation. That’s fuel”.
For the market, this dynamic mirrors an expanding cycle and underscores Bitcoin’s role as an anti-money-printing asset.
A New Liquidity Cycle
Bitcoin is driven by liquidity and access to capital. Raoul Pal notes in his panel discussion, “liquidity drives this market,” reiterating the relationship between money supply and Bitcoin. Thus, periods of economic growth and monetary easing create a favorable environment for Bitcoin to thrive.
Thus, liquidity in the current cycle is seen as conditional and related to macroeconomic events. Additionally, a Van Eck report notes that fluctuations in the monetary supply account for more than 50% of Bitcoin’s price volatility. “Futures open interest peaked at $52B before cascading liquidations drove Bitcoin’s ~18% drawdown in early October. With leverage now normalized to the 61st percentile and prices near one-year lows relative to gold, we view this as a mid-cycle correction, not the start of a bear market,” the report states.
Data shows a clear link between liquidity and Bitcoin’s price. Since 2013, Bitcoin has increased by 700x, while global liquidity for the top five currencies grew by 100%, from $50 trillion to $100 trillion. With the US easing monetary policy and creating a favorable environment for money printing, Bitcoin could see increased inflows.
M2 Surge and Monetary Policy
In 2026, the total global money supply is expected to surpass $21 trillion in the US. Other countries are expected to follow suit, with Bitcoin emerging as an alternative asset against currency devaluation. Research emphasizes the direct correlation between M2 inflation and asset prices, and underscores a conditional correlation between the money supply and the Bitcoin price.
However, global monetary policies depict a nuanced macroeconomic environment—divergences in regional inflation patterns position Bitcoin as a cross-border hedge against inflation. Over 12 months, Bitcoin moved in the same direction as global liquidity 83% of the time, suggesting a delayed capital injection into the crypto market.
Shifts in monetary policy, particularly episodes of fiscal stimulus, have become a useful lens for evaluating Bitcoin’s behavior. Research from VanEck suggests that while Bitcoin shows a moderate correlation of approximately 0.5 with global M2 liquidity over longer time horizons, it exhibits little to no same-day correlation. This pattern implies that Bitcoin’s price action tends to respond to structural liquidity conditions rather than immediate policy announcements or short-term market noise.
Institutional Flows, ETFs, and Structural Adoption
The US Federal Reserve has shifted from a tightening stance to an easing cycle. Through December 2025, digital asset inflows totaled approximately $22.32 billion, while exchange-traded products (ETPs) climbed to more than $180 billion in assets under management, contributing to broader market stabilization.
These developments align with Morgan Stanley’s analysis, which indicates that rate cuts are likely to direct new capital toward Bitcoin and other high-yield assets. Analysts highlight a growing inflow into ETFs beyond Bitcoin and Ethereum. CoinShares emphasizes that Solana’s ETF recorded US$421M in inflows, indicating structural appeal for risk-on assets.
At the macro level, banking policy shifts, a reset in open interest, and the continued structural distribution of crypto assets into long-term holders may create conditions for renewed inflows into top crypto assets in 2026.
Conditions for an Imminent Surge
Bitcoin’s potential 2026 surge is tied to expected returns and shifting monetary conditions. Broader macroeconomic trends, including the search for alternatives to a weakening US dollar, are influencing growing institutional interest in crypto. VanEck notes that Bitcoin may serve as a form of ‘digital gold,’ particularly during periods when tradfi markets are weaker amid global economic pressures.
It is important to note that monetary policy alone cannot sustain prolonged price appreciation in crypto markets. Early policy easing or reduced liquidity could prompt reversals in institutional exposure, potentially limiting Bitcoin’s near-term appeal. However, forecasts of continued global M2 growth, alongside expectations of renewed monetary expansion by central banks, suggest conditions that may support higher Bitcoin valuations in 2026.
Source: https://zycrypto.com/from-money-printing-to-market-surge-the-macro-forces-driving-crypto-in-2026/
