As 2025 concludes, the cryptocurrency market is kicking off 2026 with efforts to rebound from a notably tough year. After a turbulent phase, the total market capitalization has risen back above $3 trillion. Nevertheless, many investors are pondering what the new year may hold for digital currencies.
Institutions Predict Positive Crypto Prices For 2026
A recent report from analysts at Bull Theory highlights that while traditional markets, especially metals, thrived last year, cryptocurrencies did not meet expectations. Silver rose by 160%, while gold increased by 66%.
In contrast, Bitcoin (BTC) ended 2025 down by approximately 5%, despite several positive signs such as continual buying by Strategy, strong inflows into Bitcoin exchange-traded funds (ETFs), and heightened institutional interest.
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When an asset class significantly underperforms amid ample liquidity, historical patterns suggest that the disparity usually diminishes. Specific forecasts have emerged from several major institutions and notable investors regarding both Bitcoin and Ethereum (ETH).
Standard Chartered anticipates Bitcoin reaching $150,000 by the end of 2026, while JPMorgan estimates a price of $170,000. Citi, on the other hand, predicts a base case around $143,000, with a more bullish scenario suggesting a rise to $189,000.
Cathie Wood from ARK Invest foresees a long-term scenario in which Bitcoin could achieve $500,000, pending widespread institutional adoption. Tom Lee from Fundstrat projects that Ethereum will trade between $7,000 and $9,000 by early 2026, driven by the tokenization of real-world assets.
New Regulations And Economic Optimism
Analysts emphasized that, distinct from past years, this cycle exhibits several key differences. For one, cryptocurrencies are no longer hindered by operating in a legal gray area.
Emerging regulatory frameworks, particularly in the US, are set to provide clearer guidelines, reducing uncertainty and making it easier for institutional investors to participate.
The expected alterations aim for simpler regulations that could improve market structure and broaden institutional interest beyond merely Bitcoin and Ethereum.
Furthermore, several indicators suggest a significant movement in the crypto market could be imminent. The conclusion of quantitative tightening on December 1, 2025, combined with a rising GDP, indicates a favorable environment for cryptocurrencies.
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With inflation kept below 3% and unemployment at 4.6%, it appears the Federal Reserve (Fed) may take a more dovish approach, particularly with a new Fed Chair expected to assume office in May 2026.
Overall, as the new year unfolds, the crypto market is positioned in a phase of underperformance rather than excess. Such contrasting scenarios often lead to swift repricings as discrepancies are reconciled in response to liquidity.
Consequently, Bull Theory analysts believe that 2026 could be the year these gaps begin to close, resulting in a potentially bullish environment for cryptocurrencies.
Featured image from DALL-E, chart from TradingView.com
