Bitwise Predicts Bitcoin to Break Cycle and Reach New Highs in 2026

Bitwise has outlined a bullish long-term outlook for Bitcoin, predicting that BTC will break its traditional four-year market cycle and reach a new all-time high in 2026. In a recent post on X, the crypto asset manager cited several structural changes in the market, including the impact of the Bitcoin halving, shifting interest rate cycles, and the weakening of historical boom-and-bust patterns that have defined prior crypto cycles.

According to Bitwise, Bitcoin’s market dynamics are evolving as institutional participation accelerates. Major financial institutions such as Citibank, Morgan Stanley, Wells Fargo, and Merrill Lynch are increasingly entering the crypto space, while allocations to spot Bitcoin ETFs continue to rise. Bitwise also highlighted that on-chain development is expected to accelerate in 2026, further strengthening Bitcoin’s fundamentals. The firm added that a sustained pro-regulatory shift in the United States could enable companies to adopt crypto at a faster pace, supporting higher long-term valuations.

Beyond Bitcoin, Bitwise is also optimistic about Ethereum and Solana. The firm believes both ETH and SOL could reach new all-time highs if the proposed CLARITY Act passes in Congress. The crypto bill is expected to be marked up next year, and while its approval is not guaranteed, Bitwise sees regulatory clarity as a major catalyst for growth. The company emphasized that stablecoins and tokenization are powerful megatrends, positioning Ethereum and Solana as key beneficiaries due to their dominant ecosystems.

Bitwise also forecasted that Bitcoin will become less volatile than NVIDIA in 2026, noting that BTC has already shown lower volatility than the tech stock throughout 2025. This trend, the firm explained, reflects Bitcoin’s gradual derisking as an asset and the diversification of its investor base through ETFs and institutional adoption.

Additional predictions include ETFs buying more than 100% of the new supply of Bitcoin, Ethereum, and Solana, crypto equities outperforming traditional tech stocks, rising activity on prediction markets like Polymarket, expanding stablecoin influence, and declining correlation between Bitcoin and equities as crypto matures into a distinct asset class.