Russell Thompson, Chief Investment Officer at Hilbert Group, has warned of a 25% tightening in global liquidity, which he believes will create near-term challenges for bitcoin and other risk assets. He expects U.S. policymakers to respond with measures such as reforming the supplementary leverage ratio and cutting interest rates. Bitcoin has experienced significant volatility, dropping from an all-time high of over $126,000 in October 2025 to about $75,600 currently, reflecting a broader market correction. Despite this, Thompson maintains a positive outlook, predicting that bitcoin will be 'significantly higher' by the end of the year and may reach new highs by 2027. He emphasizes that while liquidity conditions have stabilized in some areas, a broader tightening is imminent, which could hinder any sustainable rally in risk assets without external support. Additionally, he anticipates legal clarity on crypto regulations and an expansion of the Federal Reserve’s balance sheet, which could provide further support for bitcoin in the medium term.