Binance Report: Expectations of Fed Accelerated Interest Rate cuts in 2026 are Positive for Bitcoin, January may be a turning point to see the downward trend In its January report on the cryptocurrency market, Binance Research Institute pointed out that in December 2025, despite the Federal Reserve's loose policies, the cryptocurrency market continued to decline due to cautious investor sentiment. However, as asset management companies continue to increase their holdings, the market dominance of Bitcoin and Ethereum continues to strengthen. January may become a turning point in the bearish trend as investors consider switching back to cryptocurrency from overvalued asset classes. In 2025, driven by factors such as monetary easing, AI demand, and the shift towards "commodity control," metals will become a prominent asset class. Although Bitcoin also benefited from similar macro positive factors, its performance in the fourth quarter showed differentiation due to the lack of a 'strategic asset premium'. However, this differentiation may be temporary: with US legislation pushing for the institutionalization of strategic Bitcoin reserves and a possible shift from holding seized assets to active fiscal procurement, the valuation framework for Bitcoin is expected to realign with that for strategic metals. Market participants expect that loose policies will accelerate in 2026, driven by factors such as tariff shocks, fragile labor markets, and a shift towards dovish leadership, while demanding higher long-term premiums to compensate for "fiscal dominance" and the upcoming debt pressure of over $50 trillion. The steepening of the yield curve indicates that the market does not recognize the Federal Reserve's claim of a "soft landing," creating an excellent opportunity for Bitcoin to both leverage the influx of short-term cheap liquidity and benefit from long-term fiat credit erosion. Since its launch, most altcoin ETFs have attracted net inflows of funds, with cumulative inflows exceeding $2 billion, led by XRP and SOL, while other assets have also contributed small but stable inflows. In contrast, since October, Bitcoin and Ethereum spot ETFs have continued to experience net outflows of funds, highlighting the differentiation of marginal demand as market momentum slows down. Although it is still in the early stages, the approval of more altcoin ETFs and sustained capital inflows may increasingly affect the distribution of liquidity, especially if broader market capital inflows accelerate again. By 2025, the market value of six newly launched stablecoins will exceed 1 billion US dollars. As stablecoins continue to be used globally, their related indicators are increasingly becoming important indicators for measuring global financial activity.