Bitcoin has entered a rare 25-day liquidity window as major global catalysts come together.
The Federal Reserve, Bank of Japan, and SEC are each making moves that could reshape the 2026 crypto cycle.
The market is much more sensitive than it appears.
After weeks of volatile trading, Bitcoin may appear to be calming down, but there is a larger story unfolding.
Jessica Gonzalez, host jessica shawsays a whole new liquidity cycle is set to take place in the coming weeks.
“Cryptocurrency in 2026 will look completely different than it does today.”
The sale is almost complete. What should I do next?
Bitcoin recently saw a 36% correction from its all-time high, which is steep but normal for the rhythm of a bull market. Long-term holders sold off heavily during the selloff, leaving supply at its lowest level since March. Now that the pitch is over, Gonzalez asks a pointed question. Who can actively sell now?
Price also took advantage of the $88,000 to $89,000 fair value gap created by the earlier rapid moves. Meanwhile, retail interest has waned across search and transaction activity.
Focus on the Fed and the Bank of Japan
The first big trigger happens today at the Federal Reserve. A 25 basis point rate cut is expected, but the real driving force is the Fed's underlying tone and forward guidance. With a thin order book and compressed volatility, even a single phrase can move Bitcoin. “The current market is dead grass.” Gonzalez says.
A week later, the Bank of Japan will be in the spotlight. If interest rates were to rise after years of negative interest rates, capital would return to Japan, U.S. yields would rise, and global liquidity could tighten. This change typically puts pressure on risk assets, including cryptocurrencies.
Regulatory momentum intensifies
In a recent interview on Fox News, SEC Chairman Paul Atkins said the Bitcoin Market Structure Act is “on the verge of passing,” indicating that Congress and the SEC are finally working together on a clear framework for the industry. The bill would establish rules for spot Bitcoin ETFs, divide oversight between the SEC and CFTC, and set basic standards for how crypto exchanges must operate.
And major companies are moving quickly.
BlackRock has filed a new staked ETH ETF. MicroStrategy purchased 10,624 BTC after meeting with banks and sovereign wealth funds. Argentina's central bank is considering allowing banks to offer Bitcoin services.
Liquidity is the real story
M2 money supply reached a record high of $22.3 trillion. Stablecoin reserves are high, and financial institutions are positioning themselves early on.
The lesson for Gonzalez is that while this 25-day period does not guarantee another rally, the story can flip, and once liquidity turns around, cryptocurrencies tend to move quickly.
