A recent report from Bitfinex Alpha indicates that 2026 will be the year of liquidity, with Bitcoin's price movements increasingly influenced by demand-side factors and macroeconomic conditions, rather than solely by its mechanical scarcity—a shift particularly evident in 2025. The significantly smaller declines in Bitcoin since 2024 reflect a market now dominated by patient, long-term capital rather than speculative retail funds. Liquidity will increasingly become a primary driver of Bitcoin's performance in 2026, further fueled by continued institutional investor acceptance of cryptocurrencies; cryptocurrency ETP assets under management (AUM) are projected to exceed $400 billion by the end of 2026.