A long-term scenario predicts Powell cutting rates, leading to a 2026 Bitcoin bear market lasting at least 6 months. A new dovish Fed chair will then aggressively cut rates and implement quantitative easing, sparking the next bull cycle. This will eventually lead to inflation resurfacing, requiring subsequent rate hikes.
"One way this could play out on a more grander scale is the Fed Powell cuts rates again. Um, we end up getting a 2026 sort of bare market that maybe lasts for at least 6 months. Um, the new chair comes in, they cut rates, they they turn the printers on, you then get the next cycle. Um, and and things start to rally again, but then they realize they're starting to reignite the animal spirits. Inflation starts to come back and they have to raise rates."