Why Bitcoin Could Rally Hard in 2026

Looking at the macro setup, several factors are aligning for a strong crypto market year ahead. Bitcoin's dominance metrics are hitting peaks—historically, this phase has preceded significant moves. Meanwhile, market sentiment remains deeply pessimistic, which typically signals capitulation has run its course.

On the monetary side, dollar weakness is accelerating as the Fed continues expanding its balance sheet. Global liquidity conditions remain exceptionally loose, creating favorable conditions for risk assets. What's particularly interesting is the behavior of long-term holders—selling pressure has dried up substantially, suggesting conviction at current levels.

Institutional players are quietly accumulating positions. Big banks are building exposure, not exiting. When you combine exhausted bearish sentiment, structural accumulation patterns, and accommodative liquidity conditions, the risk/reward proposition shifts materially in crypto's favor.

The setup reads less like hype and more like early-stage institutional re-entry before the next major cycle unfolds.