Two Prime CEO Alexander S. Blume stated in Forbes that after adjusting for fluctuations, the cryptocurrency market will still be sluggish in 2025, but that does not mean stagnation. On the contrary, with the acceleration of institutionalization and the gradual improvement of the regulatory framework, in 2026, DAT 2.0 will gain legitimacy, stablecoins will be ubiquitous, the Bitcoin four-year cycle will end, U.S. investors will gain offshore liquidity, and product refinement will occur.
Prediction 1: DAT 2.0 Bitcoin financial service providers will gain legitimacy
This year, digital asset management companies (DAT) experienced rapid expansion but also faced growing pains. From liquor brands to sunscreen companies, many have undergone rebranding, claiming to be buyers and holders of crypto assets, but skepticism from investors, regulatory pressure, mismanagement, and low valuations have posed challenges to this model. Among a series of new projects, some DAT even hold so-called “altcoins,” but in reality, these are merely speculative projects lacking historical performance and investment value.
However, in the coming year, many issues surrounding the DAT market and its strategies will gradually be resolved, and companies truly based on Bitcoin standards will also find ways to enter the public market. Many DATs, even the largest ones, will see their trading prices begin to align more closely with the value of their underlying assets, and managers will face greater pressure to create value for shareholders more effectively. After all, a company that merely holds a large amount of Bitcoin without taking action (while maintaining private jets and high management fees) is not an attractive investment for shareholders.
This market pressure will eliminate those speculative DATs that rely solely on hype, while companies that truly focus on Bitcoin financial services and can create excess value for shareholders will stand out. The year 2026 may become a watershed for the DAT industry, where quality companies gain legitimacy and market recognition, while inferior companies are eliminated or acquired.
Prediction 2: Stablecoins will be ubiquitous and permeate traditional finance
The year 2026 will be a breakthrough year for stablecoins. USDC and USDT are expected to further penetrate traditional financial transactions and products, no longer limited to trading and settlement scenarios. Stablecoins may not only appear in Crypto Assets exchanges but also in payment processors, corporate finance departments, and multinational settlement systems. For enterprises, the appeal of stablecoins lies in achieving instant settlement without relying on slow or expensive bank payment networks.
However, similar to the situation with DAT, the stablecoin market may also face saturation: there are too many speculative stablecoin projects, an endless stream of consumer-facing payment platforms and wallets, and numerous blockchains claiming to “support” stablecoins. It is anticipated that by the end of the year, many speculative projects will be eliminated or acquired by the market, leading to industry consolidation, and ultimately the market will be dominated by more influential stablecoin issuers, retailers, payment networks, and exchanges/wallets.
Five Major Scenarios for Stablecoin Penetration in 2026
Corporate Financial Management: Multinational companies use stablecoins for real-time cross-border fund transfers.
Salary Distribution: Remote workers receive global salaries through stablecoin
Supply Chain Settlement: B2B transactions use stablecoin to reduce settlement costs and time.
Remittance Market: Alternative to traditional remittance services like Western Union
International Trade: Cross-border trade using stablecoins to bypass the SWIFT system
The popularization of stablecoins will have a profound impact on the Crypto Assets market. When stablecoins become everyday payment and settlement tools, they will bring more users and Liquidity to the entire encryption ecosystem. More importantly, the mainstreaming of stablecoins will force regulatory agencies to establish a more comprehensive framework, which in turn will enhance the legitimacy of the entire industry.
Prediction 3: The Bitcoin four-year cycle will officially end in 2026
I hereby announce: Bitcoin's “four-year cycle” will officially end in 2026. Today's market is broader and more institutionalized, no longer an isolated ecosystem. Instead, new market structures and ongoing buying pressure will change Bitcoin's development trajectory, allowing for sustained, incremental growth. This means the overall Fluctuation will decrease, and Bitcoin will become a more stable store of value.
This prediction is highly disruptive, as the four-year cycle has always been one of the most important narratives in the Crypto Assets market. This cycle is driven by Bitcoin's halving mechanism, which historically triggers a new round of bull markets after each halving. However, Blume believes that with ETFs, institutional allocation, and broader mainstream adoption, the market structure has fundamentally changed, and the cyclical fluctuations will be replaced by a more stable growth curve.
The evolution of Bitcoin from a trading tool to a new asset class will be accompanied by more stable capital flows, longer holding periods, and lower “cyclical” fluctuations. This transformation has different impacts on different types of investors: for speculators seeking quick riches, it loses the opportunity for cyclical spikes; for long-term investors and institutions, it gains a more predictable and stable growth path.
Prediction Four: American investors will gain offshore liquidity channels
As digital assets further integrate into the mainstream market, and a favorable policy environment gradually takes shape, the relevant rule-making and market structure will enable U.S. investors to gain access to overseas Crypto Assets Liquidity. This transition will not happen overnight, but over time, we will see more approved affiliated institutions, improved custody solutions, and overseas platforms that meet U.S. compliance standards emerge.
Some stablecoin projects may also accelerate this trend. USD-backed stablecoins can already circulate across borders, something that traditional banking payment networks cannot achieve. As major issuers expand into regulated offshore markets, they could potentially link U.S. capital with global liquidity pools. In short, stablecoins may ultimately achieve the goal that regulators have long pursued: connecting U.S. investors with the international digital asset market in a clear and traceable manner.
This is crucial because offshore liquidity plays a key role in price discovery in the digital asset market. The next phase of market maturity will be the standardization of cross-border market operations. Currently, U.S. investors mainly participate in the cryptocurrency market through local exchanges such as Coinbase, but the largest liquidity pools in the world are actually in offshore exchanges like Binance and OKX. If a compliant bridge can be established to connect the two markets, it will significantly enhance market efficiency and price discovery capabilities.
Prediction Five: Products will become more refined beyond simple tracking
The new year will bring a new round of improvements for debt and equity products related to Bitcoin, while also seeing the emergence of more trading products centered around Bitcoin-denominated returns. Even investors who were previously cautious about digital assets will begin to accept this more mature product system. We are likely to see structured products collateralized by Bitcoin, as well as strategies aimed at generating actual returns through Bitcoin exposure (rather than merely betting on price fluctuations).
ETFs have begun to go beyond simple price tracking by providing returns through staking or options strategies. While fully diversified total return products remain limited, derivative products will become more complex and better integrated with standard risk frameworks. By 2026, Bitcoin will no longer just be a speculative tool, but will gradually become a core component of financial infrastructure.
The refinement of such products will attract more traditional investors to enter the market. Currently, many institutional investors are adopting a wait-and-see attitude towards crypto assets, partly due to limited product options and insufficient risk management tools. When the market offers more diversified products, such as Bitcoin-covered call option strategies, Bitcoin structured notes, and Bitcoin collateralized loans, these investors will find tools that align with their risk preferences and investment objectives.
