Bitcoin is poised for a tough 2026, with numerous analysts predicting an extension of its late-2025 decline. However, as prices falter, early adopters believe that the upcoming year could signify a pivotal moment for Bitcoin’s practical applications, as payment systems evolve and utilizing BTC as a means of exchange becomes increasingly straightforward and accessible.
According to early Bitcoin investor Michael Terpin, the price of Bitcoin (BTC) might plummet to around $60,000 in Q4 2026, which could present an attractive buying opportunity. Terpin stated:
“The end of 2026 will provide a fantastic buying opportunity, as market lows driven by fear gradually transition into significant buying in 2028 and 2029 after the next halving results in a potential supply shock.”
Terpin noted that Bitcoin still has about a 20% chance of hitting new highs before the cycle low, but those prospects are dwindling monthly.
A new Federal Reserve chair is expected to alleviate macroeconomic conditions by reducing interest rates, but if the Republican Party fails to secure both chambers of Congress in the 2026 US midterm elections, it could severely damage the pro-crypto regulatory landscape, according to Terpin.
Many analysts had predicted that 2025 would be transformative for Bitcoin’s price, with expectations of BTC reaching between $180,000 to $250,000 by the end of that year, while BTC seems set to close below the highs of over $100,000 seen in January.
Related: What the Fed’s divided 2026 outlook means for Bitcoin and crypto
Despite the decline, Bitcoin payment systems and use cases are expected to grow in 2026
“The year 2025 made Bitcoin easier to hold and earn yields,” said Rich Rines, an early Bitcoin adopter and blockchain software developer. “2026 should facilitate its actual use.”
Rines mentioned that Bitcoin neobanks, digital infrastructure firms offering online banking services, and Bitcoin-backed stablecoins will enhance Bitcoin’s function as a medium of exchange.
Payments company Square has integrated Bitcoin payments into its point-of-sale systems, allowing merchants to accept BTC and automatically convert 1% of their total sales into BTC, if they choose to.
The Bitcoin Lightning Network, a layer-2 scaling solution facilitating BTC for transactions, minimizes friction by establishing payment channels between participants, with only the net balance of the channel being recorded on the BTC ledger in a single final transaction.
According to Graham Krizek, founder of Lightning Network payment company Voltage, the Lightning Network could capture 5% of stablecoin transactions by 2028, as he mentioned in an interview with Cointelegraph.
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