Merkle Capital, a licensed digital asset fund manager in Thailand, expects a broad improvement in global liquidity next year, setting the stage for growth across equities, fixed income, real estate investment trusts (REITs), and assets such as Bitcoin and gold.
Thanalop Preedamanoch, fund manager at Merkle, said a dominant investment theme for late 2025 through mid-2026 is the global easing cycle, as markets increasingly anticipate 2-3 additional Federal Reserve rate cuts next year.
The Fed also signalled it will halt balance sheet reduction through quantitative tightening on Dec 1, and analysts predict the US regulator may even resume quantitative easing next year, reinforcing the view that global liquidity is rising, according to Merkle.
Against this backdrop, risk assets stand to benefit the most. Equities and yield-bearing instruments such as bonds and REITs are poised to attract capital inflows, while store-of-value assets may outperform given their strong historical correlation with global liquidity, he said.
Both Bitcoin and gold have recorded a 70-80% positive correlation with liquidity trends over the past several years, said Mr Thanalop.
For Bitcoin, speculative momentum and growing institutional acceptance remain powerful catalysts heading into 2026. After gaining legitimacy through the launch of spot exchange-traded funds in 2024, Bitcoin entered 2025 with further validation as the US government designated it a strategic reserve asset.
Looking ahead, the implementation of US legislation such as the Genius Act and Clarity Act passed earlier this year is expected to accelerate mass adoption by expanding regulatory clarity and broadening investor participation, he said.
Meanwhile gold continues to thrive amid intensifying geopolitical competition between the US and China. The US is strengthening its dominance in digital finance by supporting dollar-backed stablecoins, while China and several emerging market economies, including the Brics bloc, are seeking to reduce reliance on the dollar by lowering their holdings of US treasuries and increasing their gold reserves.
With China’s central bank holding gold of only 7% of its foreign reserve portfolio, compared with more than 70% among major Western economies such as the US, Germany, France and Italy, demand for gold could remain structurally elevated, according to Merkle.
These trends support a “dual store of value portfolio” strategy, blending gold’s stability with Bitcoin’s long-term upside potential, said Mr Thanalop.
Gold can help buffer volatility during crypto downturns, while Bitcoin offers growth opportunities driven by technology adoption and institutional demand. A balanced allocation tailored to investors’ risk tolerance may serve as an effective hedge against inflation and shifting global liquidity conditions, he said.