The macro outlook for 2026 is driven by four central themes impacting financial markets. Firstly, the Federal Reserve's balance sheet is projected to expand by an additional $45 billion monthly, culminating in an annual increase of approximately half a trillion dollars. This follows a December shift from quantitative tightening to easing, initiating a $40 billion injection. This increased liquidity is expected to favor Bitcoin and stablecoin providers like Circle, given their treasury holdings. Secondly, a sustained reduction in interest rates is anticipated, fostering a risk-on investment environment. Political statements indicate a preference for aggressive rate cuts, further accelerating this trend. This scenario is particularly advantageous for robust Layer 1 protocols, with Ethereum identified as a key asset. Thirdly, a push for financial market deregulation is underway, spearheaded by figures such as Howard Lutnick and Scott Bessent. Executive orders have been signed to deregulate AI, an initiative expected to extend to crypto markets due to inherent similarities and public perception. Additionally, plans to overhaul the Financial Stability Oversight Council aim to alleviate perceived regulatory burdens on economic growth and financial stability, favoring looser regulation. Within this context, DeFi projects demonstrating synergistic integration with traditional finance, exemplified by Chainlink's collaboration with BlackRock's tokenized treasury fund, are strategically positioned. Lastly, a rotation of capital from precious metals is predicted, as gold and silver are considered overbought relative to Bitcoin. A portion of profits from these metals is expected to flow into Bitcoin throughout 2026. The proposed allocation strategy entails increasing Bitcoin holdings, gaining exposure to stablecoin infrastructure, investing in leading Layer 1 protocols, and selecting DeFi projects that actively partner with established financial entities, while reallocating from precious metals into Bitcoin.