URGENT UPDATE: Bitcoin (BTC) is on track to reach a new all-time high in 2026, breaking away from its traditional four-year cycle, according to insights from Bitwise CIO Matt Hougan. This bold prediction comes as institutional interest in Bitcoin surges, bolstered by favorable regulatory developments and significant capital influxes from major financial institutions.
In a recent note, Hougan emphasized that the forces previously governing Bitcoin’s cycles are weakening. The anticipated influx of institutional capital, particularly from Morgan Stanley, Wells Fargo, and the newly approved Bitcoin Exchange-Traded Funds (ETFs), is expected to sustain prices throughout 2026. Just this month, Bank of America allowed its financial advisors to recommend Bitcoin ETFs, potentially unlocking portions of the bank’s $3.5 trillion in client assets for crypto investments.
Historically, Bitcoin has operated on a four-year cycle, typically marked by significant price increases followed by sharp pullbacks. However, Hougan argues that the dynamics of the market are changing. He stated,
“The forces that previously drove four-year cycles — the Bitcoin halving, interest rate cycles, and crypto’s leverage-fueled booms and busts — are significantly weaker than they’ve been in past cycles.”
The current macroeconomic environment is set to favor Bitcoin’s growth. Interest rates, which have pressured digital assets in previous years, have turned positive for crypto following three rate cuts by the U.S. Federal Reserve in 2025. This shift is expected to continue as the Fed eases monetary policy in the coming year.
According to the research team at asset manager Grayscale, Bitcoin’s price could soar to new heights in the first half of 2026, signaling a transition to what they call the “institutional era.” Grayscale highlights macro demand for alternative stores of value amid rising public debt and improved regulatory clarity as crucial factors driving this transition.
Moreover, Bitcoin’s volatility is predicted to decline further, with the asset showing less volatility than Nvidia throughout 2025. Bitwise anticipates this trend to persist into 2026. Additionally, as institutional adoption increases, Bitcoin’s correlation with traditional stocks is expected to diminish, even as equities face challenges related to valuation and economic growth concerns.
Currently, Bitcoin is trading near $87,000, reflecting a slight dip of nearly 1% as of publication.
As we move closer to 2026, all eyes will be on Bitcoin and how these institutional dynamics reshape its market position. Investors and crypto enthusiasts alike are urged to stay alert for developing news as the landscape evolves rapidly.
This is a pivotal moment in cryptocurrency history, with significant implications for investors and the broader economy. Share this update to keep your network informed!
