Bitwise’s 2026 Crypto Forecast: Bitcoin, Ethereum, And Solana Poised For New Record Highs

Overview

Bitwise, an asset manager and exchange-traded fund (ETF) issuer, has released a report outlining a positive outlook for the cryptocurrency market by 2026. The report predicts substantial growth and new all-time highs for Bitcoin, Ethereum, and Solana, driven by various megatrends in the sector.

Key Insights from Bitwise’s Report

Bitwise asserts that Bitcoin is on the brink of breaking away from its historical four-year price cycle, a shift that could lead to new record prices. The report identifies several factors contributing to this optimistic forecast, including changes in the dynamics of past cycles such as the Bitcoin Halving, fluctuations in interest rates, and the influence of leveraged market movements. These factors are expected to have a reduced impact in the coming years.

A notable aspect of the report is the anticipated influx of large institutional players into the crypto market. Major financial institutions, including Citi, Morgan Stanley, Wells Fargo, and Merrill Lynch, are expected to enhance their allocations toward spot ETFs and contribute to advancements in on-chain developments by 2026. As a result of these institutional investments, Bitcoin is projected to experience reduced volatility, with indications that it may show lower volatility than traditional tech stocks.

The report also expresses strong confidence in Ethereum and Solana, particularly if the CLARITY Act is passed. Bitwise views the growth of stablecoins and the trend of tokenization as significant drivers of market expansion, positioning both Ethereum and Solana to benefit from these developments.

Institutional Demand and ETF Projections

Bitwise forecasts a surge in institutional demand, estimating that ETFs will acquire more than 100% of the new supply of Bitcoin, Ethereum, and Solana by 2026. The report suggests that most institutional investors will have access to crypto ETFs by this time. Specific estimates indicate that the new supply of Bitcoin, Ethereum, and Solana hitting the market will include significant quantities, though the report anticipates that ETFs will likely purchase even more than these figures suggest.

Additionally, the report emphasizes that crypto equities are expected to outperform traditional technology stocks. While tech shares have seen substantial gains in recent years, the Bitwise Crypto Innovators 30 Index, which tracks companies related to crypto assets, has experienced even more significant growth during the same period. Bitwise believes this momentum will continue, driven by potential revenue growth, mergers and acquisitions, and a supportive regulatory environment.

Caution on Stablecoins

As stablecoins gain popularity, Bitwise warns that they may be blamed for destabilizing emerging market currencies. The market for stablecoins, currently valued at nearly $300 billion, is projected to grow to $500 billion by the end of 2026. This increase may lead one or two countries to attribute their financial difficulties to stablecoins, despite the fact that the adoption of stablecoins is typically a response to instability in local currencies.

The report also anticipates the launch of over 100 crypto-linked ETFs in the United States, spurred by new SEC listing standards that facilitate the entry of these funds into the market. This regulatory clarity is expected to create what Bitwise refers to as “ETF-palooza” in 2026.

From Author

Bitwise’s report presents a comprehensive and optimistic vision for the future of the cryptocurrency market. The emphasis on institutional investment and regulatory clarity suggests a significant shift in the landscape, potentially making cryptocurrencies more mainstream. The caution regarding stablecoins also highlights the complexities that accompany rapid market growth, indicating that while opportunities abound, challenges remain.

Impact on the Crypto Market

• Anticipated growth in Bitcoin, Ethereum, and Solana could lead to new all-time highs.
• Increased institutional participation may stabilize market volatility and enhance legitimacy.
• The surge in crypto-linked ETFs could drive further investment and accessibility for institutional investors.
• The growth of the stablecoin market may introduce new regulatory challenges and scrutiny.
• Continued outperformance of crypto equities could attract more investors from traditional markets.
• The potential for widespread adoption by Ivy League endowments may signal a shift in investment strategies among prestigious institutions.