Bitcoin and Ethereum Enter High-Volatility Phase, Says Liquid Capital’s Jack Yi
Bitcoin and Ethereum Are Poised for a Volatility Storm — Says Liquid Capital’s Jack Yi
Macro shifts, rate cuts, and capital rotation could reignite crypto’s next bull run — with BTC and ETH leading the charge.
⚡ Quick Facts
- 🧠 Analyst: Jack Yi, Founder of Liquid Capital
- 📉 Outlook: High volatility into 2026
- 💰 Catalyst: Central bank rate cuts, liquidity rebound
- 🪙 Focus: Bitcoin (BTC), Ethereum (ETH), and large-cap rotation
- 🔮 Target: ETH above $5,000 could trigger a new DeFi wave
🌪️ Volatility Is Coming
Crypto markets are entering what Jack Yi calls “the volatility window” — a convergence of macro and technical forces that could redefine the next year for Bitcoin and Ethereum.
Yi’s latest market note outlines how central bank policy shifts — especially interest rate cuts — could set off a liquidity-driven rally similar to those in 2019 and 2020.
“Cryptocurrencies are undervalued compared to the Nasdaq. There’s no need to panic — just buy firmly,” — Jack Yi, Founder of Liquid Capital
Yi sees the current U.S. stock market correction as a setup, not a setback. Once equities stabilize, he expects capital rotation into crypto — particularly undervalued large caps like BTC and ETH.
💸 Central Banks, Liquidity, and the Next Rally
Monetary policy remains the silent driver. Historically, rate cuts by the U.S. Federal Reserve and other central banks have unleashed waves of capital into risk assets — crypto included.
Yi argues that 2026 could echo early 2020, when liquidity injections revived markets post-crisis. With inflation cooling and global policymakers signaling easing, he believes the setup for a macro-fueled bull run is already forming.
His firm, Liquid Capital, is doubling down on long-term positioning — not chasing short-term pumps but accumulating during consolidation.
“Our thesis is simple: disciplined accumulation beats reactive selling.”
🧱 Ethereum’s Role: The Catalyst Layer
Yi sees Ethereum (ETH) as the structural backbone of the next phase. If ETH breaks above $5,000, it could ignite a chain reaction across Layer 2, DeFi, and tokenized asset sectors — particularly those tied to real-world asset (RWA) integration.
Ethereum’s expanding role as a yield engine for digital finance aligns with institutional adoption trends: tokenized treasuries, staking revenue, and DeFi infrastructure are converging into one liquidity layer.
As ETH strengthens, altcoins tied to its ecosystem could see exponential returns.
📊 Patterns Repeat, Players Change
Yi’s framework mirrors historical precedents:
- 2019: Fed pivot triggers early BTC recovery.
- 2020: QE and stimulus drive full-blown crypto rally.
- 2025–2026: Rate cuts + digital adoption could fuel the next cycle.
But this time, the ecosystem is more mature — stablecoin liquidity is deeper, DeFi rails are institutional-grade, and on-chain data shows strong accumulation at current levels.
Yi’s message is clear: this isn’t a crash — it’s a coiling spring.
🧠 TL;DR
Jack Yi predicts that Bitcoin and Ethereum are entering a high-volatility phase, fueled by expected global rate cuts and market rotation out of equities. His call: buy discipline, not panic — especially as Ethereum edges toward a potential breakout above $5,000, setting up the next liquidity wave across DeFi and RWAs.
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