5 Macro Trends Likely to Send Bitcoin and XRP Skyrocketing in 2026
Key Takeaways
Water seeks its own level, and so does money. When cash becomes plentiful in the financial system, scarce digital assets such as Bitcoin (BTC 0. 27%) and XRP (XRP 2. 46%) often...
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cryptocurrency
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June 28, 2025
07:00 AM
The Motley Fool
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Water seeks its own level, and so does money
When cash becomes plentiful in the financial system, scarce digital assets such as Bitcoin (BTC 0. 27%) and XRP (XRP 2. 46%) often move sharply higher
Looking toward 2026, there are five macroeconomic forces that appear ready to remove several roadblocks that have held crypto back during the past two years
XRP and Bitcoin are ly to go higher as a result
Here's why each matters
Liquidity is rising again Think of liquidity as the total pool of spendable cash in the global economy
When central banks add money to their respective national financial systems, usually by enlarging their balance sheets, investors have more capital to deploy, and riskier assets major cryptocurrencies benefit first
And since mid-2024, the total combined assets of the U
Federal Reserve, the European Central Bank, and the Bank of Japan have ticked higher for multiple quarters in a row
During the last comparable upswing, from March 2020 to April 2021, Bitcoin leapt 500%, while XRP surged 483%
So if major central banks keep refilling the punch bowl, history suggests another party for crypto prices, assuming nothing spoils the fun
Image source: Getty Images
The Fed is lining up to cut rates Interest rates set the cost of borrowing money from central banks
Lower borrowing costs make cash cheaper and thus push investors to seek higher-return alternatives to government bonds, including leading digital assets Bitcoin and XRP
The Fed is now widely anticipated to trim its benchmark interest rate by mid-2026, which implies at least a couple of interest rate cuts in the very near future
In 2019, when the Fed cut rates by almost 1 percentage point, Bitcoin rose 120% in five months, and XRP climbed 17%
That exact performance bably won't be replicated this time around, assuming things ceed as expected
But it will still ly be bullish for these coins
A weaker dollar opens the door for foreign buyers The U
Dollar Index is down roughly 8% so far in 2025 as worries over trade tensions and federal deficits mount
A weaker dollar means that global investors need fewer units of their local currency to buy dollar-denominated Bitcoin or XRP, which could have the effect of juicing demand
In 2017, a similar dollar slide that lasted through the start of 2018 preceded a jump in Bitcoin's market cap by a multiple of 13. 5, and pushed XRP to rise by a shocking multiple of 34
As long as tariffs remain a topic of conversation for the U
Economy, there could be a tailwind in play here
Bond yields are drifting lower Government bond yields represent the safest return for investors
Treasury yield has fallen from 4. 7% in January 2025 to near 4
When safe yields drop, the gap between bonds and non-yielding assets such as crypto narrows, making coins more appealing in comparison
After yields slid in late 2018 until shortly after the start of their rapid climb back up in October 2021, Bitcoin's price rose by 572%, and XRP's ed, climbing 84% in the tail end of the period
Real incomes are climbing When people have more disposable income, they invest more, and when they have invested in safe assets sufficiently, they move on to in riskier ones Bitcoin or XRP
Paychecks are stretching a bit further after accounting for inflation recently; average hourly earnings in the U. 4% from March 2024 to March 2025
During the economic stimulus of the 2020 to 2021 period, fresh cash on the sidelines helped power Bitcoin's rise
There's no similarly strong stimulus this time around, but that doesn't change the fact that investors with deeper pockets are more ly to devote some of their money to cryptocurrencies Bitcoin or XRP
Alex Carchidi has positions in Bitcoin
The Motley Fool has positions in and recommends Bitcoin and XRP
The Motley Fool has a disclosure policy.
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