Bitcoin Predicted to Hit New All-Time High by 2026, Experts Say

UPDATE: New reports confirm that Bitcoin (BTC) is set to surge to a new all-time high by 2026, breaking its traditional four-year cycle. Matt Hougan, Chief Investment Officer at Bitwise, announced this urgent prediction in a note released on Monday, emphasizing that weakening forces that previously influenced Bitcoin’s cycle are giving way to new dynamics.

This forecast is crucial as it suggests a shift in the cryptocurrency landscape. Pro-crypto regulations and an influx of institutional capital, particularly through Exchange-Traded Funds (ETFs), are expected to sustain Bitcoin’s price momentum well into 2026. Hougan noted that major financial institutions, including Morgan Stanley and Bank of America, are beginning to allocate resources towards Bitcoin ETFs, potentially channeling significant portions of their client assets into the crypto market.

Historically, Bitcoin has followed a four-year cycle characterized by three years of price increases followed by a significant pullback. By this pattern, 2026 was anticipated to be a downturn year, especially since the last halving event occurred in April 2024. However, Hougan argues that the influences driving past cycles have significantly weakened. 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 research arm of asset manager Grayscale supports this transformation thesis, projecting that Bitcoin will reach new heights in the first half of 2026. They cite macro demand for alternative stores of value amidst rising public debt and improving regulatory clarity as key factors fueling this trend.

Moreover, Hougan highlighted that the current interest rate environment is favorable for cryptocurrencies, contrasting starkly with the pressures faced in 2018 and 2022. The U.S. Federal Reserve cut rates three times in 2025 and is expected to continue easing in the year ahead, providing a supportive backdrop for Bitcoin’s ascent.

Bitcoin’s volatility is also on a downward trend, with the cryptocurrency experiencing less volatile price changes than Nvidia throughout 2025. Hougan predicts this trend will persist into 2026, with Bitcoin’s correlation with stocks expected to decrease. This decoupling comes as equities face valuation concerns, while Bitcoin’s institutional adoption continues to drive its price upward.

As of now, Bitcoin is trading near $87,000, reflecting a slight decline of nearly 1% at the time of this publication on Wednesday. The market’s immediate focus is on how these developments will play out as institutional investment channels expand.

Investors and crypto enthusiasts alike should keep a close eye on these evolving dynamics, as the cryptocurrency market appears poised for significant changes. What happens next could redefine how Bitcoin and other cryptocurrencies are perceived in the financial landscape.

Stay tuned for more updates as this story continues to develop.