Khaberni - After Bitcoin reached a historical peak and experienced a sharp decline last year, executives and investors in the sector told CNBC that the cryptocurrency might reach new record levels by 2026, possibly facing sharp volatilities.
In the annual Bitcoin forecast report published by CNBC, many analysts have projected a wide price range for the cryptocurrency in 2026, estimated between 75,000 and 225,000 US dollars.
In October last year, the price of Bitcoin hit a record high exceeding 126,000 dollars, before subsequently dropping to its lowest at around 80,000 dollars, according to CoinMetrics data, which currently represents a decline of about 30% from its highest historic level.
The digital currency market rebounded last year, aided by what was considered a more favorable regulatory environment in the United States under President Donald Trump, and growing interest from institutional investors and traditional financial entities like banks.
Meanwhile, companies known as "Digital Asset Treasuries" (DATs) saw a significant surge, as these companies gather large amounts of Bitcoin and other cryptocurrencies.
The debate continues over the valuations of tech companies, and whether the boom in artificial intelligence will turn into a financial bubble. A wave of selling in cryptocurrencies at the end of the year fell within this context, with investors reassessing risky assets and selling their currency holdings, which led to forced liquidations exacerbating the decline, setting the stage for a challenging environment in 2026.
Alex Thorn, head of research at Galaxy, told CNBC: "We live in a complex investment environment. Stock valuations are exaggerated, the geopolitical environment is turbulent, and there are concerns about the sustainability of capital expenditure on artificial intelligence in the short term, while monetary policy conditions are constantly changing, especially as the mid-term elections in the USA approach."
He added: "Given these conditions, it is difficult to predict the future of Bitcoin in 2026."
According to Carol Alexander, a finance professor at Sussex University, the price of Bitcoin is expected to remain within a range of high volatility between 75,000 and 150,000 dollars, with a price focus around 110,000 dollars, resulting from "the market’s absorption of the transition from cycles driven by individual traders to institutionally distributed liquidity."
Historically, the price of Bitcoin was driven by individual traders, but over the past two years, the number of institutional investors has increased and is expected to continue this trend in 2026.
Alexander has a track record of Bitcoin predictions over the past years, although her prediction that the price of the currency would reach 200,000 dollars in 2026 has not materialized. She also said that by the summer of 2025, Bitcoin could be trading "around 150,000 dollars, plus or minus 50,000 dollars," and its price had indeed surpassed 100,000 dollars by then.
James Butterfill, head of research at CoinShares, a firm specializing in digital asset management, predicted that the price of Bitcoin could range between 120,000 and 170,000 dollars in 2026, with more positive price movements possible in the second half of the year.
Butterfill noted that investors will be watching who the new chairman of the U.S. Federal Reserve will be after Jerome Powell's term ends in May, indicating that the new chairman’s monetary policy will have a direct impact on high-risk asset valuations.
He added that investors are also focusing on the “Clarity” act in the U.S., which aims to create a framework for regulating digital assets, emphasizing that "regulation has always been a persistent hurdle and reaching a solution would be an important market incentive."
Standard Chartered Bank expects Bitcoin's price to reach 150,000 dollars in 2026, after lowering its forecast from 300,000 dollars in December. Jeff Kendrick, the global head of digital asset research at the bank, mentioned that the expected price drop in 2025 was "within expected limits," prompting the bank to revise its expectations.
Kendrick added that the purchases by Digital Asset Treasuries (DATs) of Bitcoin have likely ended, and these funds will not buy the same quantity of Bitcoin previously to support the market. Meanwhile, Bitcoin Exchange-Traded Funds (ETFs) are expected to drive prices in 2026, as they enable investors to track the price of the digital currency without owning the underlying asset.
Yawei Yang, chief economist at Bit Mining, expected the continued high volatility in Bitcoin's price between 75,000 and 225,000 dollars in 2026. He added: "Next year could be strong for Bitcoin, supported by the possibility of interest rate cuts and a more flexible regulatory stance towards cryptocurrencies, however, volatility is likely to increase amidst ongoing economic and geopolitical uncertainty."
In December 2024, his previous forecasts were partially accurate, predicting a price drop to around 80,000 dollars in 2025, which actually occurred, while his prediction of a rise to between 180,000-190,000 dollars did not materialize.
