As 2026 begins, several pivotal events are poised to impact the cryptocurrency markets. The Federal Reserve is expected to cut interest rates multiple times, with major institutions like Goldman Sachs and Citigroup predicting two to three cuts, potentially lowering rates to 3%-3.25%. This monetary easing could boost liquidity, benefiting cryptocurrencies. Simultaneously, the Federal Reserve has initiated a "Reserve Management Purchase" program, buying $40 billion in U.S. Treasury securities monthly to maintain banking reserves. This move, alongside a significant decline in the Treasury General Account balance, could further enhance market liquidity, potentially driving cryptocurrency market growth. In contrast, Japan is expected to raise interest rates to combat inflation, which historically has led to cryptocurrency market downturns. However, with anticipated U.S. rate cuts and increased liquidity, the impact may be mitigated. Additionally, the U.S. midterm elections in November could influence market dynamics, as economic policies aimed at stimulating growth may favor risk assets, including cryptocurrencies.