Bitwise’s 2026 Crypto Forecast: Bitcoin, Ethereum, and Solana Set for New All-Time Highs

In its recent report, asset management and exchange-traded fund (ETF) provider Bitwise shares an optimistic vision for the cryptocurrency market in 2026. The report highlights anticipated robust growth and predicts that Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) will achieve new record highs.

Key Takeaways

Bitcoin's Break from Cycles: Expectation of Bitcoin breaking its typical four-year price cycle, influenced by institutional buys.
Institutional Interest: Major financial institutions are entering the crypto space, promoting greater adoption and investment.
Future of ETFs: Institutional demand is expected to drive ETFs to buy more than their share of new supply from major cryptocurrencies.
Stablecoin Market Growth: The stablecoin market is predicted to reach $500 billion, potentially creating scapegoats for economic challenges in some countries.
Broader Crypto Trends: Anticipated regulatory developments may encourage significant investments from Ivy League endowments and a variety of new crypto ETFs.

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Bitcoin's Break from Traditional Cycles

Bitwise asserts that Bitcoin is ready to depart from its traditional four-year price cycles, paving the way for new highs. Various elements contribute to this positive outlook. Historical pricing factors like Bitcoin Halving, interest rate changes, and market volatility caused by leveraged trades may have less influence in the coming years.

Crucially, large financial institutions—including Citi, Morgan Stanley, Wells Fargo, and Merrill Lynch—are poised to enter the crypto arena. This could speed up the flow of institutional investments toward spot ETFs and enhance the blockchain landscape by 2026. Consequently, Bitcoin is anticipated to become less volatile and may even exhibit lower volatility than technology giant Nvidia during 2025.

There is also considerable optimism surrounding Ethereum and Solana, particularly if the CLARITY Act is enacted. Bitwise views the growth of stablecoins and the process of tokenization as significant trends, positioning both Ethereum and Solana as prime beneficiaries.

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ETFs Expected to Drive Demand

According to the report, the demand from institutional investors is projected to rise sharply, with ETFs likely to acquire over 100% of the newly generated supply of Bitcoin, Ethereum, and Solana. Bitwise predicts that most institutional investors will have access to crypto ETFs by 2026.

As for the new supply expected on the market, estimates suggest around 166,000 Bitcoin worth approximately $15.3 billion, 960,000 Ethereum around $3 billion, and 23 million Solana tokens valued at about $3.2 billion. However, it is expected that ETFs will purchase even more than these figures indicate.

Furthermore, the report points out that crypto equities are likely to outshine traditional technology stocks. While tech stocks have generally climbed by 140% in the last three years, crypto equities have performed even better. The Bitwise Crypto Innovators 30 Index, which monitors companies delivering essential services for crypto assets, has surged by 585% in the same timeframe. Bitwise believes this upward momentum will continue into 2026, driven by expected revenue growth, mergers and acquisitions, and improved regulatory conditions.

Stablecoins and Economic Implications

As stablecoins gain popularity, Bitwise warns they may become scapegoats for the financial issues of emerging market currencies. Valued at nearly $300 billion, the stablecoin market—which includes tokenized USD variants like USDT and USDC—is projected to reach $500 billion by the end of 2026.

During this growth, it's likely that one or two countries may hold stablecoins accountable for their economic troubles, despite the reality that they wouldn’t resort to stablecoins if their local currencies were stable.

Moreover, Bitwise anticipates the launch of over 100 crypto-linked ETFs in the U.S., driven by the SEC’s new listing standards that promote a unified regulatory framework. This regulatory clarity could culminate in what Bitwise terms “ETF-palooza” come 2026.

Lastly, the company forecasts that half of Ivy League endowments may invest in cryptocurrencies, and that the assets managed in on-chain vaults could double in the forthcoming years.

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At the time of writing, Bitcoin was trading at $86,165, having experienced a decline of 2% and almost 7% over the past 24 hours and week, respectively. Currently, it is trading 31.8% below its all-time high of $126,000.

Featured image from DALL-E, chart from TradingView.com