Building on bitcoin's volatility after the Federal Reserve's December 2025 rate cut—which spiked prices above $94,000—crypto markets in early 2026 are buzzing with optimism. Traders are embracing the mantra 'Run it hot,' betting on bold Fed actions under pressure from President Donald Trump. Recent surges to nearly $95,000 have yielded to drops amid geopolitical concerns, but expectations of further rate cuts and asset purchases fuel hopes for a boom, with analysts predicting bitcoin could hit $200,000 or $1 million by early next year.
Following the Federal Reserve's 25 basis-point rate cut on December 10, 2025, that drove bitcoin above $94,000 before a retreat, the cryptocurrency market entered 2026 with renewed volatility. Bitcoin climbed to almost $95,000 earlier this week before dropping sharply due to a $17.3 trillion geopolitical shock. Yet traders remain optimistic, adopting the phrase 'Run it hot' in anticipation of aggressive economic policies from the Fed.
This sentiment arises from President Donald Trump's recent statements pressuring the central bank. In a December Truth Social post, Trump said, “We are going to be encouraging the good market to get better, rather than make it impossible for it to do so.” He added, “Anybody that disagrees with me will never be the Fed chairman,” alluding to his plans to replace Chair Jerome Powell this month. Trump cited recent U.S. GDP growth of 4.2%, predicting it could reach “10, 15, and even 20 GDP points in a year—and maybe even more than that.”
Analysts expect the Fed to resume asset purchases similar to quantitative easing amid political pressure. Mohamed El-Erian, chief economic adviser at Allianz, posted on X, "Political pressures on the Federal Reserve could well extend beyond lowering interest rates to include asset purchases designed to influence housing affordability directly."
Trump proposed a $200 billion mortgage bond-buying program to lower mortgage rates. Crypto influencer Arthur Hayes, BitMEX co-founder, enthused on X: “Run it f***-ing hot, bitcoin to $1 million,” and urged going long on bitcoin. In a blog post, Hayes forecasted bitcoin at $200,000 in early 2026, stating, “As the amount of dollars expands, the price of bitcoin and certain cryptos will sky rocket.” He expects Trump to ramp up stimulus before November midterms: “You best believe [Trump] will not lose an election for lack of printing money."
Market analyst Ben Hunt reinforced this last month on X: “They’re gonna run it hot like you can’t even believe," tying it to Trump's rhetoric. While global tensions pose risks, these expectations could drive bitcoin's next surge.
