What Lies Ahead for Bitcoin’s Future Price? Renowned Economist Explains

Following the sharp pullback in the Bitcoin (BTC) price, economist James E. Thorne has offered a comprehensive assessment of the macroeconomic dynamics driving the markets.

Thorne stated that the reopening of the US government, coupled with the Treasury's management of the Treasury General Account (TGA), represents a “near-term liquidity injection” into the financial system. He said this process marks the official end of monetary tightening (QT), which was currently slowing.

According to Thorne, the Fed's interest rate cuts will continue. The economist, who expects the federal funds rate to be lowered to around 2.75%, stated that the FOMC composition will change in 2026, and that Chairman Jerome Powell will leave office, marking “the end of the era of progressive left-wing Keynesian control.”

Thorne emphasized that current monetary policies have produced a clear stagnation in the housing market, saying that excessively tight financial conditions, delayed policy responses, and reliance on backward-looking indicators have disrupted credit channels, weakening the housing market, one of the key sectors of the economy.

Despite this outlook, Thorne noted that Bitcoin adoption is rapidly increasing, and that new legislation providing regulatory clarity will further strengthen institutional adoption. Recalling that the global fiat money supply continues to expand, the economist said, “Nothing has changed; Bitcoin's digital rarity remains unparalleled.”

Thorne described the selling trend of some investors as Bitcoin's long-term fundamentals strengthen as a typical example of “irrationality in the markets,” noting that liquidity shifts during periods of high volatility create opportunities that are only recognized later. Thorne concluded his assessment by saying, “A bull run ends when liquidity runs out, not when it begins. This has always been the case.”