Crypto - Why 2026 Will Be The Last (Easy) Year For Making Money

The current bull market in crypto and equities, fueled by global liquidity and rising corporate earnings, is expected to continue into 2026, offering significant profit opportunities before an anticipated brutal bear market driven by AI-induced unemployment and a liquidity crunch.

• 2026 is projected as the final 'easy' year for crypto and equity gains.

• Global liquidity and rising corporate earnings are fueling the current rally, but a severe downturn is expected thereafter.

• Plan to take profits and hold cash for significant buying opportunities during the anticipated brutal bear market.

Global liquidity continues to fuel strong performance in risk markets, including crypto and equities, with 2026 projected as the last 'easy' year for making substantial gains. Despite stretched valuations, rising corporate earnings and AI-driven growth suggest the rally has further to run. However, an eventual market peak is anticipated to be followed by a severe recession and bear market, exacerbated by AI-driven job displacement and the unwind of less resilient crypto treasury companies.

Current Market Cycle

• 00:00:00 The market is in a late-stage bull cycle, driven by flowing liquidity and high asset valuations, with 2026 expected to bring significant gains in crypto. Despite this bullish outlook, veteran traders warn that the subsequent crash will be sudden and steep, potentially leading to a brutal recession and a bear market worse than previous downturns, with crypto treasury companies facing severe challenges.

Liquidity and Business Cycle

• 00:01:14 Global liquidity is the primary driver for all assets, including stocks, crypto, and real estate, with its flow directly impacting market pumps and crashes. Currently, global liquidity is climbing, explaining the strength in risk markets and Bitcoin's recent performance, but analysts predict a rollover, likely by Q2 2026, which historically signals an economic downturn and a major hit to risk assets.

Stock Market Bubble's Role

• 00:04:47 The stock market bubble is far from over and significantly impacts crypto, as buoyant equities create a favorable risk-on environment. Corporate earnings are still growing, distinguishing this rally from the dot-com bubble and indicating further room for expansion, with JPMorgan suggesting equities could rise another 50%. As long as tech stocks, powered by AI names, continue to push higher, Bitcoin, Ethereum, Solana, and other cryptocurrencies are expected to follow, but this interconnectedness also means crypto will be hit hard when the stock market eventually cracks.

Anticipated Bear Market and Strategy

• 00:06:48 An especially brutal bear market is expected after the current cycle's peak, potentially worse than 2022, fueled by AI's capacity to displace millions of jobs, leading to unprecedented unemployment and severe recessions. The emergence of numerous crypto treasury companies, particularly smaller ones, adds risk, as their forced selling during a downturn could create a negative feedback loop. The recommended strategy is to profit while the rally lasts, prepare to exit before the crash, and accumulate cash to buy quality assets at deep discounts during the inevitable deep bear market.