Bo Hines: "Anyone Bearish on Bitcoin Heading into 2026 is Foolish"

Summary: As Bitcoin closed 2025 with a loss of 6.2%, concerns about its future have increased. Despite a bearish sentiment in the market, expert Bo Hines argues that anyone betting against Bitcoin for 2026 is making a mistake. He highlights the potential positive influence of upcoming regulatory changes and market adjustments.

Key Takeaways

Bitcoin ended 2025 down 6.2%, trailing behind gold and the S&P 500.
Hedging activities are rising, with expectations of Bitcoin trading between $75K-$80K in January.
Bo Hines warns that being bearish on Bitcoin as we move into 2026 is misguided.
Analysts see potential for a bottoming phase for Bitcoin, but long-term projections remain mixed.
Institutional inflow dynamics are uncertain, with recent fluctuations in ETFs observed.

Bo Hines - 'Anyone bearish on Bitcoin heading into 2026 is foolish'

Bitcoin's Year-End Performance

Bitcoin [BTC] officially closed out 2025 with a decline of 6.2%. This performance lagged behind other asset classes, such as gold, which saw a gain of 62%, and the S&P 500, which rose by 16%.

As we approach a new year and the rebalancing strategies of major market players, there is a growing sense of caution and bearish sentiment among investors. In response, hedging activities have surged, with Bitcoin’s downside protection focusing on a price range of $75K-$80K for January.

However, Bo Hines, a strategic advisor at Tether and a former White House executive on digital assets, warns that those who are pessimistic about Bitcoin heading into 2026 are making a foolish choice.

Is Bitcoin's Bottom Really In?

Hines points to two significant factors ahead that could positively influence the market: the expected passage of the crypto market structure bill and the appointment of a new Fed chair, both of which are seen as bullish for 2026.

On a more technical note, analyst Frank Fetter believes that Bitcoin is in the process of bottoming out. He mentions the easing of the short-term holder supply ratio and a recovery towards the 'break-even' point, a sign that marked previous bottoms.

Bitcoin

Source: Checkonchain

Fetter notes that a key indication of recovery would be Bitcoin decisively reclaiming the short-term holder (STH) realized price, which was $87.5K at the time of writing. This move could alleviate panic selling among investors who have held BTC for fewer than five months.

Nonetheless, a steady inflow from institutional investors is still lacking. The U.S. spot ETFs saw an inflow of $355 million on December 30, marking the first positive net inflow after seven days of losses. However, this trend was short-lived, with a reversal occurring the following day, resulting in another outflow of $348 million on New Year’s Eve.

In summary, Julio Moreno, head of research at CryptoQuant, warns that if the trend of reduced demand from BTC treasury firms continues, it could potentially lead to negative price movements for Bitcoin.

Bitcoin

Source: CryptoQuant

As it stands, the outlook for Bitcoin's price range of $85K-$90K in the short term remains unclear. Looking further ahead, analysts are divided in their projections. Some, like Grayscale and Bitwise, are hopeful for a new all-time high in 2026. Conversely, others, such as Galaxy Research, adopt a cautious approach, suggesting that 2026 could be too unpredictable to forecast confidently.

Final Thoughts

The cryptocurrency market continues to exhibit volatility, with significant debates surrounding Bitcoin's future. As we move into 2026, understanding key factors and expert insights will be crucial for investors navigating this dynamic landscape.