Deutsche Bank Predicts Fed QE Return in Q1 2026

Deutsche Bank has made a bold prediction: the U.S. Federal Reserve is expected to begin a new round of Quantitative Easing (QE) in the first quarter of 2026. The forecast comes shortly after the bank correctly predicted the Fed’s decision to end Quantitative Tightening (QT) — giving weight to their latest outlook.

If this forecast holds true, it could mean a major shift in monetary policy is just over a year away. QE, often referred to as the “money printer,” involves the central bank purchasing financial assets to inject liquidity into the economy. Historically, this has led to rising asset prices — including equities, real estate, and cryptocurrencies like Bitcoin.

Why Deutsche Bank’s Prediction Matters

Deutsche Bank has shown strong foresight in recent Fed-related calls, especially with their accurate prediction of QT ending. This latest projection suggests they see weakening economic conditions or a financial shock prompting the Fed to pivot.

The start of QE would likely mean a return to lower interest rates, increased money supply, and an environment that favors risk assets. For investors, this could mark a new bull phase, especially in markets that thrive on liquidity — including crypto.

While the Fed has made no official statements about QE in 2026, this prediction adds to growing speculation that tighter monetary policy may not last much longer.

What This Means for Crypto and Markets

For Bitcoin and other cryptocurrencies, QE has historically been a bullish signal. During previous rounds of QE, BTC saw major price increases as investors sought alternatives to fiat currencies and inflation-prone assets.

A return to QE in 2026 could bring renewed momentum to the crypto space, especially if inflation remains under control. Combined with Bitcoin halving cycles and increased institutional interest, this forecasted liquidity injection could create a perfect storm for market growth.

Deutsche Bank’s reputation and track record make this prediction worth watching closely — and may be a reason for both traditional and crypto investors to prepare for shifting tides.