Bitcoin’s weak price performance throughout 2025 may have disappointed some investors, but things will fundamentally change next year, according to Katherine Dowling, president of Bitcoin Standard Treasury Company.
Dowling argues that a changing regulatory environment, currency expansion, and an influx of institutional capital will propel Bitcoin to even higher levels by 2026.
Mr Dowling said that despite recent risk aversion and price declines in the market, the long-term outlook remained strong. “Despite recent selling pressure, I am very optimistic about Bitcoin in 2026. Beyond fundamental dynamics, we face a triple threat: a positive regulatory environment, financial expansion, and an influx of institutional investors,” Dowling said.
Dowling predicts that Bitcoin will reach $150,000 by the end of 2026. This level corresponds to an increase of approximately 70% compared to current prices. Bitcoin has lost more than 25% of its value since its peak in October, raising fears of a bear market. However, Dowling believes short-term selling pressures will be overcome by structural catalysts.
Companies called Bitcoin Vaults provide investors with crypto exposure indirectly through stock ownership by holding Bitcoin on their balance sheets. According to Dowling, this model will continue to play an important role in the growth of institutional demand.
Dowling’s bullish scenario is based on three key factors. First, it is necessary to clarify the US regulatory framework. Dowling noted that the GENIUS Act on stablecoins is an important step forward, but also noted that Senate passage of the Transparency Act, which addresses market structure, is also important. Additionally, the Office of the Comptroller of the Currency (OCC)’s announcement that it will allow banks to buy and sell crypto assets on behalf of their customers is a significant sign of a softening of its approach to the sector.
The second factor is the resurgence of financial expansion. Liquidity conditions have improved following the Federal Reserve’s third interest rate cut this week and the formal end of quantitative tightening two weeks ago. Historically, low interest rates and increased liquidity are known to support risky assets like Bitcoin. Glider CEO Brian Huang also pointed to the changing macroeconomic environment, saying that the Fed’s interest rate cuts are creating a positive environment for Bitcoin and Ethereum ETFs, and that Bitcoin could reach $150,000 by the end of 2026.
*This is not investment advice.
