Why 2026 Will Be a Big Year for Bitcoin, Stablecoins and Crypto Regulation

Crypto is entering 2026 on uneven footing after an October crash wiped out over $19 billion in liquidations, dragging bitcoin from an all-time high of $126,080 to nearly $80,000 — one of the sharpest drawdowns since 2022.

Yet bitcoin is set to recover, wrapping up 2025 around the $90,000 mark. And while some major outlets expect a conservative market following the sell-off, analysts and experts in the industry are predicting a trading range of $130,000 to $200,000 for BTC by the end of 2026.

For that to happen, liquidity would have to expand and rate pressures need to ease.

“There's a strong relationship historically with increasing money supply and the price of bitcoin," says Ryan Rasmussen, head of research for global crypto manager Bitwise. "We believe that will continue next year, and that, globally, central banks are more likely to cut rates than increase rates.”

What to expect from bitcoin in 2026

Bitcoin started 2025 around $93,000, twice as high as its 2024 opening price of $42,280. Still, many major price forecasts assume bitcoin will surpass its prior peak in 2026 — despite some readjustments.

Standard Chartered, a major bank and financial services group, predicts a price of $150,000 by the end of 2026, down from a prior $200,000 call. Crypto asset managers Bitwise and Bernstein remain optimistic, both projecting $200,000. Meanwhile, JPMorgan Chase & Co and Citibank’s last estimates sit at $170,000 and $133,000, respectively.

Behind these numbers is a belief that bitcoin is shedding its reputation as a fringe asset and becoming more mainstream.

“The biggest asset management firms in the world are trading it, selling it, creating products around it,” says Alexander Blume, founder of SEC-registered crypto lender Two Prime. He argues that this represents a significant shift in who is buying bitcoin and for what purpose.

Institutional investors are a big part of that shift, with firms like Vanguard and Merrill Lynch recently opening broader access to bitcoin products. But while bitcoin ETFs were approved in early 2024, their impact is still unfolding.

“This idea that it was an off switch that got flipped on once [bitcoin] ETFs got approved and institutional capital immediately started flowing is just wrong,” says Rasmussen. “I think these are huge ships: They turn slow, but they're now headed in the right direction.”

For consumers, the most tangible crypto developments in 2026 may have less to do with the price of bitcoin and more with how blockchain technology is used.

The next wave of crypto gaining momentum

Beyond bitcoin, analysts expect continued growth in crypto-related infrastructure next year as use cases expand.

Stablecoins, for example, are being embraced as a separate, more utilitarian segment of the industry. These are crypto designed to have a stable value by pegging their price to a reserve asset like fiat currency (think: the U.S. dollar, the euro and the British pound), oil or real estate.

Blume calls stablecoins “a breakout product,” arguing that they are a better way of moving money around for individuals and businesses than traditional methods, like bank or wire transfers. This can be chalked up to their speed, as transactions can settle within minutes or even seconds on public blockchains. Stablecoins also boast lower transaction costs and accessibility, since they only require a digital wallet to move and are active on blockchains that run 24/7.

Tokenization, which means putting traditional assets like funds, bonds or real estate on blockchains, is also gaining traction heading into 2026.

Securities and Exchange Commission Chair Paul Atkins has repeatedly asserted that tokenization is key to modernizing U.S. markets. BlackRock CEO Larry Fink has championed the concept, as well, calling it "the next generation for markets" in 2025 earnings calls.

The model is already in use with JPMorgan’s OnChain Net Yield Fund, which issues tokenized shares of a traditional money market fund on Ethereum.

Meanwhile, AI is beginning to intersect with crypto in more practical ways. Luke Youngblood of decentralized finance platform Moonwell says he sees the industry stepping past buzzwords, with AI agents now automating tasks like yield optimization and payments, changing how consumers will interact with financial products in the coming year.

What’s (still) holding crypto back

Despite the optimism from experts, 2026 is still likely to be a bumpy ride for crypto.

Regulatory uncertainty remains a key concern. The passage of the GENIUS Act, which defines rules for issuing, reserves and oversight of stablecoins, was an important first step toward solidifying the U.S. dollar's role in the digital economy and ensuring consumers are protected from illicit crypto schemes.

Yet broader market-structure legislation has stalled. Youngblood warns that unclear rules continue to deter risk-averse institutions, even as crypto companies grow accustomed to operating in gray areas.

"While crypto lobbies have been active in trying to get market structure legislation passed, they haven’t been successful," he says, due in part to external political factors like the government shutdown.

But although institutions continue participating at higher levels than before, investor sentiment is mixed due to the most recent shock to the market — a rude reminder that volatility remains a defining feature of crypto. This is true even as the declining impact of bitcoin’s four-year halving cycle decreases the market's frequency of ups and downs.

So, what does this all mean for you? Rasmussen frames the recent dip as an opportunity for long-term investors “who have been sitting on the sidelines” and are willing to tolerate discomfort. With the price of bitcoin under $100,000, they are able to gain exposure to the market before prices become prohibitively expensive again.

He also says he believes the media overstates the volatility of crypto compared to similarly high-risk stocks and investment vehicles.

“If you look at bitcoin’s volatility versus Nvidia — which is the beloved darling stock that everybody loves and everybody owns in their portfolio," he says, bitcoin has been less volatile "by a decent amount.”

Regardless of how crypto performs in 2026, one thing is certain: It’s not going away anytime soon. Smart investors should pay attention.

“It's a multi-trillion-dollar asset class, and that's been built over 15 years of hard work and real technology,” says Rasmussen, “and I think it's going to play a meaningful role in the way that our lives operate day to day.”

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