Despite Bitcoin’s recent sharp correction, crypto asset manager Bitwise forecasts that BTC will hit new all-time highs in 2026, challenging the conventional four-year bull and bear market cycle. This outlook stands in contrast to most market analysts, who generally expect 2026 to be a bear market year.
Bitwise notes that the forces driving the four-year cycle have significantly weakened—including the Bitcoin halving effect, interest rate cycles, and leverage-driven volatility in crypto markets. CIO Matt Hougan believes that as interest rates are expected to decline in 2026, leverage-induced crashes subside, and the regulatory environment improves, Bitcoin will no longer need to follow the traditional bull-bear cycle.
Hougan highlights that faster institutional adoption and supportive regulatory policies could provide new upside momentum for Bitcoin, making it possible for BTC to set new highs next year instead of entering the typical post-halving bear market.
Bitwise anticipates that as regulatory clarity advances and institutional capital flows in, Bitcoin’s correlation with the stock market will decline further in 2026. Even though volatility remains elevated, BTC’s price swings may be lower than those of tech giant Nvidia.
With the four-year cycle fading, Hougan believes investors could benefit from a powerful combination: high returns, lower volatility, and reduced correlation. This dynamic is expected to attract tens of billions of dollars in new institutional capital, setting the stage for Bitcoin’s next major rally.
Given current market trends and institutional inflows, Bitcoin’s price could rise by over 50%. If BTC reaches a new high in 2026, its value may climb well above current levels, delivering substantial returns for investors. This growth potential is primarily driven by the diminishing influence of the historical four-year cycle, an improved regulatory landscape, and greater institutional adoption.
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Bitwise’s analysis indicates that Bitcoin is entering a new market paradigm: the traditional four-year bull-bear cycle may no longer be the dominant force, while institutional adoption and crypto-friendly regulatory policies are set to drive new highs. For investors, 2026 could prove to be a pivotal year for strong Bitcoin returns.





